Engro’s Strategic Asset Divestiture in Thermal Energy Sector Gets CCP Approval
ISLAMABAD ( WEB NEWS )
The Competition Commission of Pakistan (CCP) has approved a merger application within the thermal energy assets portfolio. This transaction involves a consortium acquiring approximately 50.10% of M/s Engro Powergen Thar (Pvt.) Ltd from M/s Engro Energy Limited.
Engro Energy Ltd, a wholly owned subsidiary of Engro Corporation Ltd, has entered into a share purchase agreement (SPA) with a consortium comprising M/s Liberty Power Holding (Pvt) Ltd, M/s Soorty Enterprises (Pvt) Ltd and M/s Procon Engineering (Pvt) Ltd for the sale of its thermal energy assets. Engro, having an immense contribution in the energy space of Pakistan, is selling its thermal assets to streamline and optimise capital and resource allocation.
Liberty Power Holding is a recently established private limited company with the main purpose to manage power generation companies within the Liberty Group. Soorty Enterprises is a private limited company in the business of manufacturing and sales of denim products and Procon Engineering is engaged in the business of manufacturing automotive parts, non-woven fabrics and foam products.
The CCP’s Phase I competition assessment identified ‘Power Generation – (CPPA-G system)’ as the relevant product market. CCP’s analysis further confirmed that Engro Powergen Thar market share as per its capacity is nominal which will remain the same after the transaction. However, post-transaction the increased presence of the acquirers will not lead to dominance in the relevant market.
With this approval, CCP anticipates improved efforts to streamline resource allocation in Pakistan’s power generation sector resulting in more competition in the long term.