CCP approves Liberty Daharki Power’s acquisition of Engro Polymers shares

The Competition Commission of Pakistan (CCP) has approved Liberty Daharki Power Limited’s acquisition of a shareholding in Engro Polymers and Chemicals Limited from Mitsubishi Corporation following a Phase-I review under Competition Act, 2010.

The transaction involves the purchase of shares in Engro Polymers under a share purchase agreement signed between Mitsubishi Corporation, Liberty Daharki Power Limited and Seagreen Enterprises (Private) Limited.

Engro Polymers, a subsidiary of Engro Corporation, manufactures polyvinyl chloride (PVC), caustic soda and hydrogen peroxide along with other chemical products.

Liberty Daharki Power operates a natural gas-fired power plant in Sindh and supplies electricity under a power purchase arrangement.

During its review, the Competition Commission assessed the potential impact of the transaction on competition in markets related to manufacturing and sale of PVC, caustic soda and hydrogen peroxide in Pakistan.

According to the regulator, the transaction does not create any horizontal overlap between the parties and will not change Engro Polymers’ market position after completion of the acquisition.

The commission stated that the relevant markets remain fragmented and the transaction is unlikely to substantially reduce competition or create significant risks of anti-competitive behaviour.