ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved a merger that will see a Korean company investing in Pakistan’s hydropower sector. The transaction involves Korea-based M/s. DL E&C Co. Ltd (Acquirer) acquiring shares in Pakistani company M/s Mira Power Limited (MPL), which operates the 102MW Gulpur hydropower plant, from M/s. DL Holdings Co. Ltd (Seller).
The Acquirer is a Korean registered company, which 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.
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 102MW 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.
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 authorized.
Moreover, it is a significant vote of confidence of international investors’ appetite for Power Sector in Pakistan.
Copyright Business Recorder, 2024
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