Karachi: The Competition Commission of Pakistan has approved the acquisition of a 90.61 percent stake in Searle Pakistan Limited by Ijara Capital Partners Limited and Noventa Pharma. The transaction, which underwent a comprehensive competition assessment, is not expected to create a dominant market position for the acquirers or significantly alter the competitive landscape in the pharmaceutical sector.

According to a statement by Competition Commission of Pakistan, the relevant product market was identified as pharmaceutical products, with further segmentation into therapeutic classes and branded versus generic pharmaceuticals. The assessment determined that Searle Pakistan’s relatively low market share would not lead to a dominant position post-acquisition. Additionally, the transaction, being conglomerate in nature, presented no significant vertical integration concerns.

The pharmaceutical sector in Pakistan, while operating under a regulated framework, faces moderate barriers to entry, such as stringent regulatory approvals and substantial capital requirements. The Commission’s evaluation concluded that the acquisition would not exacerbate these barriers or negatively affect consumers.

Searle Pakistan, a public unlisted company, focuses on the import, manufacture, and sale of pharmaceutical products. Ijara Capital Partners Limited, another public unlisted company, provides private equity and venture capital fund management services, while Noventa Pharma is a special purpose vehicle established as a private limited company.

This approval highlights the Commission’s dedication to promoting competitive market dynamics and ensuring transactions comply with the Competition Act, 2010, and the Competition (Merger Control) Regulations 2016.