CCP authorizes IIL’s acquisition of Novartis Pakistan

ISLAMABAD — The Competition Commission of Pakistan (CCP) has authorized the acquisition of Novartis Pharma (Pakistan) Limited by International Investment II Limited (IIL) after completing its Phase-I competition assessment under Section 11 of the Competition Act, 2010, and the Competition (Merger Control) Regulations, 2016.

IIL, a Hong Kong-based investment holding company and part of the Getz Group, submitted a pre-merger application to the CCP. The transaction involves the transfer of control of Novartis Pakistan from its parent companies, Novartis AG and Novartis Pharma AG, to IIL under a Share Purchase Agreement.

Novartis Pakistan is a leading pharmaceutical company involved in the manufacture, import, marketing, and distribution of medicines across various therapeutic classes. The acquisition marks a notable development in Pakistan’s pharmaceutical sector, with IIL already having a presence through subsidiaries Getz Pharma (Private) Limited and Scilife Pharma (Private) Limited.

The CCP’s Phase-I review focused on whether the acquisition would create or strengthen a dominant position in the relevant markets or substantially lessen competition. The Commission found that although there were overlaps in therapeutic classes such as diabetes, anti-rheumatics, anti-epileptics, and cardiovascular agents, the combined market shares were not significant enough to raise concerns.

Based on its findings, the CCP concluded that the transaction does not create a dominant position in any relevant market and is unlikely to substantially reduce competition in Pakistan. Consequently, the acquisition was authorized under Section 31(1)(d)(i) of the Competition Act, 2010.

The sale also marks an exit of another multinational from Pakistan, this time a global pharmaceutical giant, in Novartis International.