CCP approves majority stake acquisition of Engro Powergen Qadirpur

The Competition Commission of Pakistan (CCP) has approved a merger involving significantly reshuffling power generation assets. 

This transaction entails a consortium, mainly comprising textile companies, acquiring a 68.89% stake in Engro Powergen Qadirpur Limited (EPQL), a subsidiary of Engro Energy Limited.

EPQL operates a 217-megawatt permeate gas-based plant in Qadirpur, Ghotki. Engro Corporation, a key player in Pakistan’s energy sector, holds a 68.89% stake through Engro Energy Limited.

As per the transaction, Engro Energy has entered a share purchase agreement with a consortium of M/s Liberty Power Holding (Pvt) Ltd, M/s Soorty Enterprises (Pvt) Ltd, and M/s Procon Engineering (Pvt) Ltd. 

Liberty Power Holding focuses on managing power generation companies within the Liberty Group, Soorty Enterprises specialises in denim manufacturing and sales, and Procon Engineering manufactures automotive parts, non-woven fabrics, and foam products.

The CCP’s Phase I competition assessment identified ‘Power Generation’ as the relevant market. The analysis confirmed that EPQL’s market share is minimal. It will remain unchanged post-transaction and will not lead to market dominance.

CCP anticipates this approval will enhance resource allocation efficiency in Pakistan’s power generation sector, fostering a long term competitive environment. 

Chairman CCP, Dr Kabir Ahmed Sidhu, reiterated that the CCP’s role is to facilitate both domestic businesses and foreign investors.