The Competition Commission of Pakistan (CCP) has approved a significant merger application within the thermal energy assets portfolio. This transaction involves a consortium acquiring approximately 50.10 percent of Engro Powergen Thar (Pvt.) Limited from Engro Energy Limited.
Engro Energy Limited, a wholly-owned subsidiary of Engro Corporation Limited, has entered into a share purchase agreement (SPA) with a consortium consisting of Liberty Power Holding (Pvt) Limited, Soorty Enterprises (Pvt) Limited, and Procon Engineering (Private) Limited. This strategic sale of thermal energy assets is part of Engro’s efforts to streamline and optimize capital and resource allocation within its portfolio.
Liberty Power Holding, a recently established private limited company, focuses on managing power generation companies within the Liberty Group. Soorty Enterprises operates in the manufacturing and sales of denim products, while Procon Engineering is engaged in manufacturing automotive parts, non-woven fabrics, and foam products.
The CCP’s Phase I competition assessment identified the ‘Power Generation – (CPPA-G system)’ as the relevant product market. The analysis confirmed that Engro Powergen Thar’s market share, based on its capacity, is nominal and will remain unchanged post-transaction. Furthermore, the increased presence of the acquirers will not lead to dominance in the relevant market.
With this approval, the CCP anticipates enhanced efforts to streamline resource allocation within Pakistan’s power generation sector, fostering greater competition in the long term.
