CCP approves Korean-Pakistani power sector merger

The Competition Commission of Pakistan (CCP) has approved the merger of DL E&C Co. Ltd, a South Korean construction and engineering firm, with Mira Power Limited (MPL), a Pakistani company operating the 102 MW Gulpur hydropower plant in Azad Jammu & Kashmir.

The CCP's analysis indicated that MPL's market share is below 1%, suggesting that the merger will not affect the competitive landscape. The commission's spokesperson highlighted the transaction as a testament to the attractiveness of Pakistan's power sector to international investors, given that it does not lead to market dominance.

MPL, a subsidiary of Korea Energy (KOEN) and an unlisted public limited company in Pakistan, has been generating power since 2020. The merger, initiated by a pre-merger application by MPL and followed by a Share Purchase Agreement in July 2023, aligns with both companies' strategic objectives in enhancing their operational capabilities and market presence.