Islamabad: The Competition Commission of Pakistan (CCP) has sanctioned the acquisition of a majority stake in Engro Powergen Qadirpur Limited by a consortium primarily consisting of textile companies. The approved transaction will see the consortium obtaining a 68.89% stake in the power company, signaling significant changes in the ownership of energy assets in the country.

According to Competition Commission of Pakistan, the approval follows a Phase I competition assessment by the CCP which focused on the power generation market. Engro Powergen Qadirpur operates a 217 MW permeate gas-based plant in Qadirpur, under the aegis of Engro Energy Limited, which will transfer its majority stake as part of the deal. The involved parties in the share purchase agreement include M/s Liberty Power Holding (Pvt) Ltd, M/s Soorty Enterprises (Pvt) Ltd, and M/s Procon Engineering (Pvt) Ltd, each bringing diverse industrial expertise to the power generation sector.

The analysis by the CCP noted that Engro Powergen Qadirpur’s market share is minimal and that this will remain unchanged post-transaction. This ensures that the acquisition will not lead to market dominance or disrupt competitive balance in the sector. Furthermore, the CCP believes that this transaction will enhance resource allocation efficiency and foster a competitive environment conducive to both domestic and international investments in Pakistan’s energy sector.

Chairman CCP, Dr. Kabir Ahmed Sidhu, emphasized the role of the commission in nurturing a favorable climate for business growth and investor confidence within Pakistan, highlighting the strategic importance of this approval in the broader context of national energy policies.