CCP clears CVC Fund IX acquisition of DSM-Firmenich’s animal nutrition business

The Competition Commission of Pakistan has cleared a deal under which four investment vehicles tied to CVC Fund IX will take controlling stakes in the animal nutrition and health arm of DSM-Firmenich, according to Business Recorder. The decision was announced on Tuesday after a Phase-I review carried out under Section 11 of the Competition Act, 2010. Under the arrangement, the DSM B.V. unit will divide its operations into two separate units, while the group keeps non-controlling stakes.

The CCP determined that CVC Fund IX, the buyers and their controlled portfolio companies have no operations in Pakistan within any relevant product market where the DSM business is present. As a result, the deal involves no horizontal overlap and no vertical link, and it does not raise market share or concentration in the country. The regulator also concluded the acquisition was unlikely to erect entry barriers, strengthen dominance or substantially reduce competition, so it authorised the transaction.

DSM's unit makes nutrition ingredients for animal feed, including vitamins, carotenoids, premixes and aroma ingredients, and operates in Pakistan through DSM-Firmenich Pakistan (Private) Limited. The commission said it remains committed to investment and a competitive business environment.