ISLAMABAD: The Competition Commission of Pakistan (CCP) has sanctioned a major merger in the steel sector with international ramifications. The deal involves EP Corporate Group (EPCG) acquiring significant stakes in Thyssenkrupp’s subsidiaries.
Under the approved transaction, EPCG will obtain a 20% share in Thyssenkrupp Dritte Beteiligungsgesellschaft mbH and a 19.99% stake in Thyssenkrupp Vierte Beteiligungsgesellschaft mbH, as outlined in an Investment Agreement signed in April 2024.
The two Thyssenkrupp subsidiaries collectively control Thyssenkrupp Steel Europe AG, which operates in Pakistan through the sale of grain-oriented electrical steel. Thyssenkrupp Steel Europe AG is involved in the production, processing, distribution, and sale of flat carbon steel products, including an integrated production chain. EPCG, in contrast, is a Czech Republic-based holding company.
The CCP’s competition review focused on the ‘grain-oriented electrical steel’ sector. The assessment revealed that Thyssenkrupp Steel Europe AG’s market share in Pakistan is minimal and will remain unaffected by the merger, thus preventing any market dominance.
The CCP anticipates that this merger will attract foreign investment, enhance local steel production, and support Pakistan’s industrial growth and economic stability. Dr. Kabir Ahmed Sidhu, Chairman of the CCP, emphasized that the merger is expected to open new market opportunities, foster technological advancements, and enhance competitiveness within Pakistan’s steel industry. This move is projected to significantly contribute to the country’s economic development, driving innovation and efficiency.
