Islamabad: The Competition Commission of Pakistan (CCP) has approved the acquisition of M/s FLSmidth Cement A/S by M/s Corsica Buyer ApS under a global Share Purchase Agreement.

The transaction involves the acquisition of FLSmidth Cement A/S, a Danish company engaged in providing cement technologies and related services worldwide, by Corsica Buyer ApS, a newly incorporated Danish entity ultimately controlled by Pacific Avenue Capital Partners Management Company LLC (PACP) - a U.S.-based private equity investment adviser.

In Pakistan, the target entity operates through its wholly owned subsidiary, FLSmidth (Private) Limited, which provides cement technologies and related services in the domestic market.

Following a Phase-I competition assessment, the CCP defined the relevant product market as 'Cement Technologies and Services' within the geographic market of Pakistan. The acquirer has no operational presence in Pakistan, while the target company, through FLS Pakistan, holds a significant but non-dominant market share across various sub-segments.

The CCP determined that the transaction does not create horizontal or vertical overlaps, does not raise competition concerns, and does not create entry barriers or enhance market power for the acquirer. Accordingly, the Commission concluded that the merger is not likely to substantially lessen competition or create or strengthen a dominant position in the relevant market.

The CCP has therefore authorized the proposed acquisition under Section 31(1)(d)(i) of the Competition Act, 2010.