UAE firm to acquire Pakistan's aircraft maintenance company
The Competition
Commission of Pakistan (CCP) has approved the acquisition of a stake in M/s. Northern Technik (Private) Limited by
UAE-based M/s. International Business Company FZE, enabling fresh foreign
direct investment (FDI) in Pakistan’s aviation services sector.
According to an official statement issued on
Wednesday, International Business Company FZE—incorporated in the United Arab
Emirates in 2010—operates as a general trading enterprise, engaged in import
and export activities along with consultancy services in business, marketing,
and management.
Northern Technik (Private) Limited, established in Pakistan in 2018, specializes in providing aircraft line maintenance services to commercial airlines operating within the country. The seller, M/s. SPARS (Private) Limited, is a diversified Pakistani company with interests across multiple sectors, including aviation, real estate, telecommunications, pharmaceuticals, IT, construction, and engineering.
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The transaction involves the acquisition of a
substantial shareholding in Northern Technik, introducing foreign investment
into a niche and high-value segment of Pakistan’s aviation industry.
Following a Phase-I review under Section 11 of
the Competition Act, 2010, the CCP concluded that the deal does not raise
competition concerns. For the purpose of its assessment, the Commission defined
the relevant market as aircraft line maintenance services in Pakistan, noting
that it remains fragmented with several service providers, including airlines
with in-house maintenance capabilities.
The Commission found no overlap between the business activities of the acquiring and target companies. As a result, the transaction is not expected to impact market structure or alter the target company’s market share.
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Based on its analysis, the CCP determined that
the acquisition neither creates nor strengthens a dominant market position, nor
does it pose risks such as market foreclosure, collusion, or exclusionary
practices. It also noted that the deal would not create entry barriers or
significantly enhance the parties’ market power.
Accordingly, the transaction has been approved
under Section 31(1)(d)(i) of the Competition Act, 2010.
The CCP reaffirmed its commitment to promoting investment through transparent and efficient merger review processes while ensuring fair competition and supporting sustainable economic growth.
Source: Urdu Point