ECL’s entire EPCL stake: CCP clears Lotte Chemical’s acquisition
ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved Lotte Chemical Pakistan Limited’s acquisition of Engro Corporation Limited’s entire 56.19 percent shareholding in Engro Polymer & Chemicals Limited (EPCL), in a transaction valued at approximately Rs19.62 billion.
Lotte Chemical announced in September that it would acquire a majority stake in Pakistani PVC producer Engro Polymer & Chemicals Limited (EPCL) by purchasing a 56.19% shareholding from Engro Corporation Limited for approximately PKR 19.7 billion (EUR 61.1 million).
CCP authorised the transaction following a Phase-I competition assessment under the Competition Act, 2010.
Lotte Chemical Pakistan is a publicly listed company engaged in the manufacture and supply of Purified Terephthalic Acid (PTA), a key raw material used in the production of polyester and polyethylene terephthalate products.
EPCL manufactures and supplies Polyvinyl Chloride (PVC), caustic soda, hydrogen peroxide and other chlor-alkali products. For its assessment, CCP identified PVC, caustic soda and hydrogen peroxide as the relevant product markets, with Pakistan constituting the relevant geographic market.
According to the Commission’s assessment, EPCL is Pakistan’s sole domestic PVC manufacturer and holds approximately 91.37 percent of the domestic market. However, imported PVC provides an important competitive constraint. EPCL’s shares in the caustic soda and hydrogen peroxide markets were assessed at approximately 18.41 percent and 26.66 percent, respectively, where it competes with other domestic suppliers.
CCP found that Lotte Chemical Pakistan does not operate in any of the identified relevant markets. Neither the company nor its associated, affiliated or group companies purchases EPCL’s products. Consequently, the transaction creates neither a horizontal overlap between competing businesses nor a vertical relationship between a supplier and buyer.
The Commission also observed that the acquisition principally entails a change in EPCL’s ownership and control. It does not, by itself, increase the target company’s production capacity, sales or output.
CCP therefore concluded that the transaction was unlikely to increase market concentration, create barriers to entry, materially enhance the market power of the parties, or create or strengthen a dominant position in any of the relevant markets.
The acquisition was accordingly authorised under Section 31(1)(d)(i) of the Competition Act, 2010.
The Commission separately noted that certain ancillary restrictions associated with the transaction may require consideration under Section 5 of the Act, read with the Competition Commission (Exemption) Regulations, 2020.
The clearance facilitates a significant corporate transaction while ensuring that the change in EPCL’s ownership does not adversely affect competition, market efficiency or consumer welfare.
Copyright Business Recorder, 2026