CCP approves acquisition of Heavy Electrical Complex shareholding by DW Pakistan

The Competition Commission of Pakistan (CCP) has approved the acquisition of shareholding in M/s. Heavy Electrical Complex (Private) Limited by M/s. DW Pakistan (Private) Limited from M/s. IMS Engineering (Private) Limited, under a share purchase agreement, the CCP announced on September 9.

The acquirer, DW Pakistan, is involved in investment and acquisitions across various sectors but does not currently operate in manufacturing, engineering, or energy markets. The target company, Heavy Electrical Complex, specializes in manufacturing and repairing power transformers, including large capacity units for Pakistan’s power transmission and distribution systems. The seller, IMS Engineering, provides engineering, procurement, construction (EPC), and commissioning services.

The CCP's competition analysis identified the relevant product market as power transformers. The transaction is classified as a conglomerate merger, which does not eliminate existing or potential competitors in the relevant market.

Based on its review, the Commission concluded that the transaction will not create or strengthen a dominant position in the power transformers market.