ISLAMABAD: The Competition Commission of Pakistan (CCP) has given the green light to a merger involving thermal energy assets. This deal will see a consortium acquiring about 50.10% of M/s Engro Powergen Thar (Pvt.) Ltd from M/s Engro Energy Limited.
Engro Energy Ltd, a wholly owned subsidiary of Engro Corporation Ltd, has agreed to sell its thermal energy assets to a consortium made up of M/s Liberty Power Holding (Pvt) Ltd, M/s Soorty Enterprises (Pvt) Ltd, and M/s Procon Engineering (Pvt) Ltd. Engro is making this move to better manage and allocate its capital and resources.
Liberty Power Holding is a new private company focused on managing power generation companies within the Liberty Group. Soorty Enterprises produces and sells denim products, while Procon Engineering manufactures automotive parts, non-woven fabrics, and foam products.
The CCP’s Phase I review identified ‘Power Generation – (CPPA-G system)’ as the relevant market. The analysis showed that Engro Powergen Thar’s market share is minimal and will remain so after the merger. The transaction is not expected to lead to any dominance in the market.
The CCP believes this approval will help improve resource allocation in Pakistan’s power sector and increase competition in the long run.
