ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved a major merger in the steel industry with international impact. This deal involves EP Corporate Group (EPCG) acquiring more than 20% shares from the German industrial company Thyssenkrupp.
Specifically, EPCG will buy a 20% stake in Thyssenkrupp Dritte Beteiligungsgesellschaft mbH and a 19.99% stake in Thyssenkrupp Vierte Beteiligungsgesellschaft mbH, according to the Investment Agreement signed in April 2024.
These two companies together control Thyssenkrupp Steel Europe AG, which sells grain-oriented electrical steel in Pakistan. Thyssenkrupp Steel Europe AG also produces, processes, distributes, and sells flat carbon steel products through an integrated production chain. On the other hand, EPCG is a joint-stock company registered in the Czech Republic, mainly acting as a holding company.
The CCP’s competition assessment identified ‘grain-oriented electrical steel’ as the key product market. Their analysis showed that Thyssenkrupp Steel Europe AG’s market share in Pakistan is very small and will stay the same after the merger, ensuring no single company will dominate the market.
The CCP believes this merger will bring foreign investments, increase local steel production, and support Pakistan’s industrial growth and economic stability. Dr. Kabir Ahmed Sidhu, Chairman of CCP, emphasized that this strategic move is expected to open new markets, encourage technological advancements, and create a more competitive steel industry in Pakistan. This will significantly contribute to the country’s overall economic development, promoting innovation and efficiency.
