ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved the acquisition of a majority stake in Lotte Chemical Pakistan Limited (LCPL) by AsiaPak Investments Limited (APIL) and Montage Oil DMCC (MOD), following a detailed review of the transaction’s competitive impact.
Under the terms of the Share Purchase Agreement with Lotte Chemical Corporation (LCC), the outgoing sponsor, APIL and MOD will equally split the acquired shareholding in LCPL.
The CCP examined the implications of the deal on the market for purified terephthalic acid (PTA), which is a vital raw material for Pakistan’s polyester industry. Since neither APIL nor MOD is currently engaged in PTA production, the Commission concluded that the acquisition would not affect existing market concentration or create anti-competitive outcomes.
The regulatory review found no horizontal or vertical overlaps between the acquiring firms and LCPL, nor any concerns around increased market power, entry barriers, or reduced competition. As a result, the transaction was approved under Section 31(1)(d)(i) of the Competition Act, 2010.
APIL, incorporated in the British Virgin Islands, is an investment firm with interests across infrastructure, energy, logistics, and information technology. The company holds majority stake in companies like K-Electric, Daewoo Express, and Thar Coal Block 1 etc.
MOD, based in the United Arab Emirates, operates in the global oil and petrochemical trading sector.
Meanwhile LCPL, a listed company on the Pakistan Stock Exchange, is a leading domestic producer of PTA.
