KARACHI: The Competition Commission of Pakistan (CCP) has approved the acquisition of a shareholding in Engro Polymers and Chemicals Limited by Liberty Daharki Power Limited from Mitsubishi Corporation, following a Phase-I review under the Competition Act, 2010.
The transaction involves the purchase of shares in Engro Polymers under a share purchase agreement between Mitsubishi Corporation, Liberty Daharki Power and Seagreen Enterprises (Private) Limited.
Engro Polymers, a subsidiary of Engro Corporation, produces polyvinyl chloride (PVC), caustic soda and hydrogen peroxide, among other chemicals. Liberty Daharki Power operates a natural gas-fired power plant in Sindh, supplying electricity under a power purchase arrangement.
In its review, the CCP assessed the potential impact of the transaction on competition in markets for the manufacturing and sale of PVC, caustic soda and hydrogen peroxide in Pakistan.
The commission said the deal does not involve any horizontal overlap between the parties and will not alter the target company’s market share following the acquisition.It added that the transaction is unlikely to substantially lessen competition, noting that the relevant markets remain fragmented and do not present a significant risk of anti-competitive conduct.
