ISLAMABAD: The Competition Commission of Pakistan (CCP) has granted approval for the acquisition of 11.9% of the paid-up ordinary share capital of M/s Sindh Engro Coal Mining Company (SECMC) Limited by M/s International Electric Power (Private) Limited under a Share Purchase Agreement (SPA).
M/s International Electric Power (Private) Limited, established in March 2024 for the purpose of this transaction, is jointly owned by Liberty Power Holding, Soorty Enterprises, and Procon Engineering. The target company, SECMC, is a key player in coal mining and supply, while the seller, M/s Engro Energy Limited, a subsidiary of Engro Corporation, serves as a major holding company for energy investments in Pakistan.
In its competition assessment, the CCP identified the relevant market as ‘Coal Mining’ within Pakistan. SECMC operates under the regulatory oversight of the Thar Coal Energy Board and the Government of Sindh, for determining the price of coal for Thar-coal based power plants. This transaction strengthens International Electric Power’s foothold in the coal mining industry, while SECMC’s market share will remain stable post-acquisition.
The coal mining sector in Pakistan, particularly in the Thar region, is crucial for the country’s energy security and economic growth, given its potential to support large-scale power generation projects. With International Electric Power’s entry into this sector, the transaction is poised to contribute to the broader development of Pakistan’s energy infrastructure, enhancing domestic coal production and reducing reliance on imported fuels. This strategic move highlights the growing importance of coal mining in shaping the country’s energy future.
Copyright Business Recorder, 2024
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