The Competition Commission of Pakistan (CCP) has approved merger of a Korean firm with a Pakistani company Mira Power Limited (MPL), Business Recorder learnt on Monday.
The transaction involves Korea-based DL E&C Co. Ltd acquiring shares in MPL, which operates the 102 MW Gulpur hydropower plant, from DL Holdings Co. Ltd.
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In its competition assessment, CCP determined that MPL’s estimated share in the market is less than 1%, and this transfer of ownership will not result in any modification of the MPL`s presence in the market.
“The proposed transaction will not lead to the dominance of the acquirer in the relevant market post-transaction, and therefore, the merger was authorised,” said CCP spokesperson in a statement. “Moreover, it is a significant vote of confidence in international investors’ appetite for the Power Sector in Pakistan.”
The acquirer is a Korean registered company that mainly operates as a construction company, and also provides engineering, procurement, and construction solutions in South Korea and internationally. On the other hand, MPL is a public limited company (Unlisted) existing under the laws of Pakistan.
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MPL is a subsidiary of Korea Energy (KOEN), a South Korean based electricity generating company. MPL has been successfully generating power since 2020 in Pakistan via the 102 MW Gulpur hydropower plant located in Kotli district, Azad Jammu & Kashmir.
MPL had submitted a pre-merger application to the CCP pursuant to Section 11 of the Competition Act, 2010. Both the Acquirer and Seller entered into a Share Purchase Agreement for the sale of shares back in July 2023.
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