KARACHI: The Competition Commission of Pakistan (CCP) has approved the acquisition of additional shares in Jura Energy Corp by IDL Investments Ltd from Phoenix Exploration Ltd, concluding that the transaction is unlikely to harm competition in Pakistan’s upstream oil and gas sector.
The deal involves the purchase of common shares in Jura Energy under a share purchase agreement dated March 5, 2025, the regulator said in a statement on Monday. Jura Energy, a publicly listed company incorporated in Alberta, Canada, is engaged in oil and gas exploration and development. The company operates in Pakistan through its wholly owned subsidiaries, Spud Energy Pty Ltd and Frontier Holdings Ltd, which hold working interests in several exploration licences and leases.
IDL Investments, an investment holding company incorporated in the British Virgin Islands, already held a stake in Jura Energy prior to the transaction. The acquisition increases its shareholding in the company.
Phoenix Exploration, the seller, is a Mauritius-incorporated investment holding firm with interests in energy and related sectors across multiple jurisdictions, including oil and gas exploration ventures.
The CCP conducted a Phase-I review to assess the potential impact of the transaction on competition, identifying the relevant market as upstream oil and gas exploration and production in Pakistan.
The regulator noted that IDL Investments does not have independent operational activities in Pakistan apart from its shareholding in Jura Energy. As a result, the transaction mainly represents a change in shareholding at the parent company level and does not alter the operational structure of Jura Energy’s subsidiaries in Pakistan.
Based on the available information and market dynamics, the commission said the deal does not involve horizontal or vertical integration between the parties and is unlikely to create or strengthen a dominant market position or substantially lessen competition.
The CCP therefore approved the transaction under Section 31(1)(d)(i) of the Competition Act, 2010. However, the commission noted that the transaction had been completed before obtaining regulatory approval, which is required under Pakistan’s merger control regime. The parties were directed to ensure strict compliance with pre-merger approval requirements under the Competition Act and the Competition (Merger Control) Regulations, 2016 in future transactions.
