P&G to sell Port Qasim manufacturing assets to Colgate-Palmolive

Colgate-Palmolive (Pakistan) Limited (COLG) plans to acquire land, a manufacturing facility, and related assets at Port Qasim, Karachi, from Procter & Gamble (Pakistan) Limited.

The listed FMCG disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Friday.

“This is to inform you that the Board of Directors of Colgate-Palmolive (Pakistan) Limited has approved to negotiate and enter into an asset purchase agreement with Procter & Gamble (Pakistan) Limited for the acquisition of land, manufacturing facility and assets located at Port Qasim, Karachi,” read the notice.

The transaction will remain subject to the execution of the asset purchase agreement, regulatory approvals and completion of all necessary formalities, it added.

In October last year, P&G announced that it would discontinue its business operations in Pakistan as part of a global restructuring plan.

It said P&G would wind up its manufacturing and commercial activities in Pakistan and rely on third-party distributors to continue serving its customers in the South Asian country.

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“In line with P&G’s global efforts to accelerate growth and value creation, the company has decided to shift our business and operating model in Pakistan and transition to a third-party distributor model to continue to serve consumers.

“This means we will wind down the manufacturing and commercial activities of P&G Pakistan and Gillette Pakistan Ltd. and serve consumers from our other operations in the region,” P&G said.

Meanwhile, COLG was set up in 1977 as a public limited company by the name National Detergents Limited.

It was renamed to what it is now in 1990 when it entered a Participation Agreement with Colgate-Palmolive Company, USA. The company manufactures and sells detergents, personal care and other related products.