Key Points
- Competition Commission of Pakistan (CCP) approves global acquisition under Section 31 of the Competition Act, 2010
- Deal involves takeover of Danish firm FLSmidth Cement A/S by Corsica Buyer ApS, backed by US-based PACP
- CCP finds no competition risks or market overlaps in Pakistan’s cement technology sector
- FLSmidth’s local subsidiary to continue operations without structural change
ISLAMABAD: The Competition Commission of Pakistan (CCP) — the country’s statutory antitrust authority — has approved the acquisition of Denmark-based FLSmidth Cement A/S by Corsica Buyer ApS, according to a CCP press release.
Corsica Buyer ApS is a newly incorporated Danish entity ultimately controlled by Pacific Avenue Capital Partners Management Company LLC (PACP), a US-based private equity investment adviser.
According to the CCP, the approval followed a Phase-I competition assessment conducted under Section 31(1)(d)(i) of the Competition Act, 2010. The Commission concluded that the proposed acquisition would not substantially lessen competition or create a dominant position in Pakistan’s cement technologies and services market.
FLSmidth Cement, a global provider of cement production technologies and industrial solutions, operates in Pakistan through its wholly owned subsidiary FLSmidth (Private) Limited. The CCP noted that while FLS Pakistan holds a “significant but non-dominant” share in the domestic cement technology market, the acquiring entity has no operational presence in the country.
“The Commission found no horizontal or vertical overlaps between the operations of the two entities,” the statement said, adding that the deal “does not raise competition concerns, create entry barriers, or enhance market power of the acquirer.”
The clearance allows the global share purchase agreement between FLSmidth Cement and Corsica Buyer ApS to proceed. The CCP stated that the approval aligns with its broader mandate to ensure fair competition and consumer protection in Pakistan’s markets.
