Islamabad: The Competition Commission of Pakistan (CCP) has given the green light for a significant transaction within the steel sector that will see EP Corporate Group (EPCG) acquiring stakes in German industrial giant Thyssenkrupp, marking a notable move in market integration with international dimensions.
According to Competition Commission of Pakistan announcement issued on 31 July 2024, the approved merger involves EPCG taking over 20% of Thyssenkrupp Dritte Beteiligungsgesellschaft mbH and a 19.99% share of Thyssenkrupp Vierte Beteiligungsgesellschaft mbH. This deal, finalized in an investment agreement last April, impacts Thyssenkrupp Steel Europe AG a key player in the production and sale of grain-oriented electrical steel in Pakistan.
The CCP’s detailed competition assessment concluded that the transaction would not lead to market dominance, as Thyssenkrupp Steel Europe AG currently holds only a minimal market share in Pakistan, which will not change post-acquisition. The commission sees this merger as a positive step toward attracting foreign investment, enhancing local steel production capabilities, and promoting economic growth within Pakistan.
Dr. Kabir Ahmed Sidhu, Chairman of the CCP, emphasized the merger’s potential to spur technological advancements and create a more competitive environment in Pakistan’s steel industry. This strategic partnership is expected to contribute significantly to the country’s industrial development by fostering innovation and operational efficiency.