The Competition Commission of Pakistan (CCP) has approved the acquisition of shares in Engro Polymer and Chemicals Limited by Liberty Daharki Power Limited from Mitsubishi Corporation.
The deal was approved after a Phase I review conducted under Section 11 of the Competition Act, 2010, according to official reports released on Wednesday.
The transaction follows a Share Purchase Agreement signed between Mitsubishi Corporation, Liberty Daharki Power Limited, and Seagreen Enterprises (Private) Limited.
Engro Corporation subsidiary Engro Polymer and Chemicals Limited is one of Pakistan’s leading manufacturers of PVC, caustic soda, hydrogen peroxide, and industrial chemicals.
Meanwhile, Liberty Daharki Power Limited operates a natural gas-fired power plant in Daharki, Sindh, and supplies electricity under a long-term power purchase arrangement.
The CCP reviewed the acquisition to evaluate its impact on competition within Pakistan’s chemical manufacturing and industrial supply sectors.
According to the commission, the transaction does not create any horizontal market overlap between the companies and will not significantly affect market share dynamics.
Regulators also stated that the acquisition is unlikely to reduce competition or create anti-competitive risks such as market dominance, collusion, or supply restrictions.
The CCP concluded that Pakistan’s PVC and chemical markets remain competitive and fragmented, allowing fair business activity even after the ownership transfer.
The approval has attracted strong attention in Pakistan’s business community as Mitsubishi Corporation’s exit is being viewed as a significant development in the country’s industrial and investment sector.
Analysts believe the move may influence investor sentiment and future foreign investment trends in Pakistan’s manufacturing and chemical industries.