Mughal Iron & Steel Industries Limited, one of Pakistan’s largest steel manufacturers, has successfully completed the acquisition of Mughal Energy Limited (MEL).
The company shared the development in its notice to the Pakistan Stock Exchange (PSX) on Thursday.
“In continuation, to the approval by the members of Mughal Iron & Steel Industries Limited to acquire Mughal Energy Limited, we are pleased to inform you that the acquisition transaction has successfully been completed and MEL is now the wholly-owned subsidiary of the company w.e.f November 30, 2023,” read the notice.
The company said the acquisition of MEL will further enhance its strategic and competitive positioning.
“Land and hybrid power plant had already been procured and imported by MEL, whereas, local contract for the civil work, construction and installation has also been awarded,” it said.
Mughal said the plant is expected to be commissioned within 18 months from the construction date.
Mughal Iron & Steel Industries Limited was incorporated in Pakistan as a public limited company on February 16, 2010, under the repealed Companies Ordinance, 1984 (now the Companies Act, 2017).
The company’s operations comprise ferrous and nonferrous business segments. However, the principal activity of the company is the manufacturing and sale of mild steel products relating to the ferrous segment.
The main markets are the domestic housing sector market, both in urban and rural areas, large infrastructure projects market and the international market for copper products, which are exported to the People’s Republic of China.
As per AKD Securities, a brokerage house, which attended Mughal’s analyst briefing session last week, the company has successfully achieved commissioning for its copper expansion project, where it is expected to realise sales worth Rs25 billion after achieving COD in the coming 14-16 months.