FZE Gets Approval for Shares in Pakistan Aircraft Maintenance Firm

The Competition Commission of Pakistan (CCP) has approved the acquisition of a stake in Pakistan’s aviation maintenance company M/s Northern Technique (Pvt) Limited by the UAE-based company M/s International Business Company (FZE), paving the way for foreign direct investment in the country’s aviation sector.

Northern Technique provides aircraft maintenance services to commercial airlines, while the Emirati company is active in the field of international trade and consulting services. The transaction involves the acquisition of a significant stake in Northern Technique.

The Commission, after conducting a Phase I review under the Competition Act 2010, determined that the agreement would not have any adverse effect on competition in the market.

CCP described the relevant market as aircraft line maintenance services in Pakistan, saying that this sector is competitive and fragmented due to the presence of multiple service providers.

According to the CCP, there is no direct similarity in the activities of the acquirer and the target company, so this deal is unlikely to change the market structure or shares.

The Commission further stated that this transaction will neither give a dominant position to any company nor create competitive obstacles. Accordingly, the Commission has approved this agreement under Section 31 of the Competition Act, while the CCP has reiterated its commitment to promoting investment while ensuring fair competition through a transparent and effective review process.