CCP clears Liberty Daharki Power’s stake in EPCL from Mitsubishi
ISLAMABAD: The Competition Commission of Pakistan has approved the acquisition of shareholding in Engro Polymers and Chemicals Limited by Liberty Daharki Power Limited from Mitsubishi Corporation, following a Phase-I review under Section 11 of the Competition Act, 2010.
The approval follows a transaction announced earlier this year in which Mitsubishi Corporation, a Tokyo-based global integrated business enterprise, agreed to divest its minority stake in Engro Polymer & Chemicals Limited (EPCL). In a notice to the Pakistan Stock Exchange, EPCL disclosed that Mitsubishi, holding 11.007pc shares, had entered into a Share Purchase Agreement with Liberty Daharki Power Limited and Seagreen Enterprises (Private) Limited for the sale of 100,053,562 shares.
READ ALSO: Mitsubishi plans to invest $27 billion over next 3 years to drive growth
The transaction has been executed through a Share Purchase Agreement among Mitsubishi Corporation, Liberty Daharki Power Limited, and Seagreen Enterprises (Private) Limited.
Engro Polymers and Chemicals Limited, a subsidiary of Engro Corporation Limited, is one of Pakistan’s leading chemical manufacturers, producing Polyvinyl Chloride (PVC), caustic soda, hydrogen peroxide, and related products. The acquiring entity operates in the power generation sector and owns a natural gas-fired power plant in Daharki, Sindh, supplying electricity under a power purchase arrangement.
In its assessment, the CCP evaluated the potential impact of the transaction on competition in the relevant markets of PVC, caustic soda, and hydrogen peroxide in Pakistan. The Commission noted that there is no horizontal overlap between the business activities of the parties and that the acquisition will not alter the market share structure of the target company.
According to the merger order, the acquirer does not operate in the relevant market and is only acquiring shares of the target; therefore, it will not hold any market share in the relevant market post-transaction. As a result, the acquisition will not change the target’s market position.
The Commission observed that the transaction is expected to have minimal impact on market dynamics, as post-merger market shares remain unchanged. It further noted that the deal is unlikely to lead to anti-competitive outcomes such as collusion, foreclosure, or the removal of an effective competitor, particularly given the fragmented nature of the market.
The CCP also concluded that the transaction does not create entry barriers, enhance market power, or restrict the ability of existing or potential competitors to operate effectively. No credible risk of unilateral or coordinated anti-competitive conduct was identified.
Accordingly, the Commission determined that the acquisition does not create or strengthen a dominant position and authorised the transaction under Section 31(1)(d)(i) of the Competition Act, 2010.
The approval reflects the CCP’s broader policy approach of facilitating investment and corporate transactions while ensuring that competitive market structures are preserved.
Copyright Business Recorder, 2026