CCP approves Kemyion’s acquisition of BASF Pakistan

ISLAMABAD: The Competition Commission of Pakistan has cleared the acquisition of BASF Pakistan (Private) Limited by UAE-based Kemyion Chemical Solutions Trading FZCO after completing a Phase-I review under the Competition Act, 2010, according to a statement issued on Tuesday.

The commission said Kemyion filed a pre-merger application under Section 11 of the law, seeking approval to acquire the entire shareholding of BASF Pakistan from Germany’s BASF SE under a share purchase agreement dated November 18, 2025. The transaction was authorised under Section 31(1)(d)(i) of the Act.

Companies involved in the deal

Kemyion is described as a UAE-based company permitted to trade in acids, alkalis, basic industrial chemicals, construction chemicals, insecticides, petrochemicals, and plastic and nylon raw materials. BASF Pakistan is involved in indenting and merchandising a broad range of chemical products, including colorants, catalysts, solvents, oxo alcohols, and process chemicals.

The seller, BASF SE, is the parent company of the BASF Group and a multinational chemicals company based in Germany.

Competition assessment

During its review, the commission examined the transaction’s likely impact on competition in Pakistan. It identified the relevant product market as the trade in chemicals, including specialty and industrial chemicals, while the relevant geographic market was defined as Pakistan.

According to the commission’s assessment, Kemyion does not currently operate in Pakistan and has no revenue or assets in the country. On that basis, it concluded that the transaction would not materially alter market concentration.

The commission further found that the combined market share of the two parties would remain unchanged and insignificant after the acquisition. It said the proposed deal would not create barriers to entry or significantly increase the market power of the parties involved.

The CCP concluded there were no grounds to determine that the acquisition would substantially reduce competition or create or strengthen a dominant position in the relevant market. It subsequently approved the transaction under the Competition Act, 2010.