ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved a merger in the thermal power sector.
The approved transaction entails the acquisition of 20.97% shareholding of M/s. Orient Power Company (Private) Limited (OPCOL) by M/s. Whistler Enterprises (Private) Limited (WEL).
M/s. Whistler Enterprises (Private) Limited, a recently incorporated private limited company under the Laws of Pakistan, focuses on setting up, acquiring, or carrying on power generation businesses and related products or services. While M/s. Orient Power Company (Private) Limited is an independent power producer operating a 225-MW power plant in Balloki, Kasur.
The shares are being acquired from M/s. Mahmood Textile Mills Limited and Khawaja Mehr Ali, pursuant to a Share Purchase Agreement. The Phase I competition assessment identified ‘Power Generation – Thermal’ as the relevant product market, revealing that the market share of OPCOL in the Thermal power generation segment is less than 1%, which will remain unchanged post-transaction.
Given that the proposed transaction will not lead to the dominance of WEL in the relevant market post-transaction, the merger was authorized under Section 31 of the Competition Act, 2010.
Investment in the power sector is vital for its growth and its broader impact on the economy. The approval of this merger not only reflects the confidence of investors in the country’s power sector but also highlights the importance of competition in driving efficiency and innovation in the industry.
This approval underscores the CCP’s commitment to facilitating competition while ensuring the efficiency and growth of the power sector in Pakistan.
Copyright Business Recorder, 2024
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