Mitsubishi Exits Pakistan After Selling Stake in Engro Polymer
Mitsubishi Corporation has exited the Pakistani market by selling its shareholding in Engro Polymer and Chemicals Limited, a significant move approved by the Competition Commission of Pakistan (CCP).
The CCP’s approval of the share acquisition deal came after a Phase I review conducted under the Competition Act, 2010, confirming that the transaction does not pose any competition concerns within the relevant markets. The deal involves Liberty Daharki Power Limited acquiring Mitsubishi’s shares in Engro Polymer, alongside Seagreen Enterprises (Private) Limited, as outlined in the Share Purchase Agreement.
Liberty Daharki Power Limited, a company operating in Pakistan’s energy sector with a natural gas-fired power plant in Sindh, will now hold the stake previously owned by Mitsubishi in Engro Polymer. The CCP stated that there is no horizontal overlap between the acquiring and selling parties, which means the transaction will neither change market concentration nor disrupt current market dynamics.
Engro Polymer, a subsidiary of Engro Corporation Limited, is a leading Pakistani manufacturer of polyvinyl chloride (PVC) and other chemical products used extensively in the construction and industrial sectors. The relevant product markets examined during the approval process included PVC, caustic soda, and hydrogen peroxide.
The CCP concluded that the acquisition would not result in a dominant market position or reduce competition substantially and ruled out the possibility of anti-competitive practices such as collusion or market foreclosure.
This sale marks the exit of a major Japanese investor from Pakistan’s chemical industry, an event closely watched by business circles. Nonetheless, industry analysts suggest that the purchase by a local firm like Liberty Daharki Power Limited may help in maintaining operational continuity and stabilize the market.
The CCP sanctioned this transaction under Section 31(1)(d)(i) of the Competition Act, enabling the smooth transfer of shares and paving the way for Mitsubishi’s departure from Pakistan’s chemical business sector.