The Competition Commission of Pakistan (CCP) has formally approved the acquisition of shares in Engro Polymers and Chemicals Limited by Liberty Daharki Power Limited, which were previously held by Mitsubishi Corporation. The approval was granted after a Phase I review conducted under the provisions of the Competition Act, 2010.
The transaction, which also involves Seagreen Enterprises, was examined to determine whether it could raise any concerns related to market competition or concentration of economic power. After a detailed assessment, the CCP concluded that the deal does not present any risks to fair competition in the relevant markets.
According to the findings, the two companies involved operate in entirely different sectors of the economy. Engro Polymers and Chemicals Limited is primarily engaged in the production of industrial and chemical products, including PVC (polyvinyl chloride), caustic soda, and hydrogen peroxide, which are widely used in manufacturing and industrial applications. On the other hand, Liberty Daharki Power Limited is focused on electricity generation and energy production, with no direct involvement in the chemical manufacturing sector.
Because of this clear distinction in business activities, the regulator determined that there is no overlap in their operations and no likelihood of the transaction affecting market competition or creating monopolistic conditions. The CCP further noted that the acquisition will not alter existing market structures or negatively impact consumers or other businesses operating in related industries.
With this approval, the transaction is cleared to proceed, reaffirming the CCP’s position that mergers and acquisitions are evaluated carefully to ensure they comply with competition laws while supporting economic activity and investment in the country.
