The Competition Commission of Pakistan (CCP) has approved Liberty Daharki Power Limited’s proposed acquisition of shares in Engro Polymer and Chemicals Limited from Mitsubishi Corporation after completing a Phase I review under Section 11 of the Competition Act, 2010.
The transaction is being carried out through a Share Purchase Agreement signed between Mitsubishi Corporation, Liberty Daharki Power Limited, and Seagreen Enterprises (Private) Limited.
Engro Polymer and Chemicals Limited, a subsidiary of Engro Corporation Limited, is one of Pakistan’s leading producers of PVC, caustic soda, hydrogen peroxide, and other industrial chemicals. Meanwhile, Liberty Daharki Power Limited operates a natural gas-fired power plant in Daharki, Sindh, supplying electricity under a power purchase agreement.
The CCP reviewed the deal to evaluate its impact on competition in the markets for PVC, caustic soda, and hydrogen peroxide in Pakistan. According to the Commission, the acquisition does not create any horizontal overlap between the businesses involved and will not alter the target company’s market share after the transaction.
The regulator concluded that the deal is unlikely to reduce competition significantly. Its analysis also found that the relevant markets remain competitive and fragmented, with no major concerns related to anti-competitive behavior such as collusion or market foreclosure.
As a result, the CCP approved the transaction under Section 31(1)(d)(i) of the Competition Act, 2010, stating that the acquisition neither creates nor strengthens a dominant market position.
