ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved a significant merger in the steel industry with international implications. The transaction involves EP Corporate Group (EPCG) acquiring over 20% shares from the German industrial conglomerate Thyssenkrupp.
Specifically, EPCG will acquire 20% stake in Thyssenkrupp Dritte Beteiligungsgesellschaft mbH and 19.99% stake in Thyssenkrupp Vierte Beteiligungsgesellschaft mbH, as per the Investment Agreement signed in April 2024.
As per the merger application, the two target companies jointly control M/s Thyssenkrupp Steel Europe AG which is currently active in Pakistan through the sale of grain oriented electrical steel.
The same is engaged in the business of production, processing, distribution and sale of flat carbon steel products along with the integrated production chain. On the contrary, EPCG is a joint-stock company registered under the laws of the Czech Republic with the principal activity of a holding company.
The CCP’s competition assessment identified ‘grain oriented electrical steel’ as the relevant product market. The analysis confirmed that Thyssenkrupp Steel Europe AG’s market share in Pakistan is minimal and will remain unchanged post-transaction, ensuring no market dominance will be established.
The CCP envisions that this merger will attract foreign investments, boost local steel production, and bolster Pakistan’s industrial growth and economic stability. Dr. Kabir Ahmed Sidhu, Chairman CCP, reiterates that this strategic move is expected to open up markets, encourage technological advancements, and create a more competitive landscape within Pakistan’s steel industry. This will significantly contribute to the overall economic development of the country, fostering innovation and efficiency.
Copyright Business Recorder, 2024
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