Mitsubishi exits Engro Polymer stake after Pakistan regulator approves acquisition deal
By Tanveer Ahmed :
Pakistan’s corporate sector has witnessed a significant ownership change after the Competition Commission of Pakistan approved the acquisition of Mitsubishi Corporation’s stake in Engro Polymer and Chemicals Limited, paving the way for the Japanese conglomerate’s exit from the country’s chemical industry.
The approval was granted following a Phase I review conducted under the Competition Act, 2010. The transaction involves the purchase of Mitsubishi Corporation’s shareholding in Engro Polymer and Chemicals Limited by Liberty Daharki Power Limited under a Share Purchase Agreement that also includes Seagreen Enterprises (Private) Limited.
In its assessment, the competition watchdog concluded that the deal would not create any major concerns regarding market concentration or competition within Pakistan’s industrial chemicals sector.
According to the regulator, there is no direct business overlap between the buyer and the seller, reducing the likelihood of anti-competitive effects. The commission said the acquisition would not result in market dominance, collusion risks or barriers that could restrict competition in the sector.
The review covered markets linked to the production and sale of industrial chemicals including polyvinyl chloride (PVC), caustic soda and hydrogen peroxide, products widely used in Pakistan’s construction, manufacturing and textile industries.
Engro Polymer, a subsidiary of Engro Corporation Limited, is regarded as one of Pakistan’s largest chemical manufacturers and a key domestic producer of PVC, which is extensively used in pipes, fittings, cables and infrastructure projects.
The acquiring company, Liberty Daharki Power Limited, primarily operates in the energy sector and manages a natural gas-fired power plant in Sindh. Industry observers say the acquisition reflects a growing trend of diversification among Pakistani business groups seeking strategic investments outside their traditional sectors.
The CCP approved the transaction under Section 31(1)(d)(i) of the Competition Act, formally clearing the way for Mitsubishi Corporation to withdraw from its investment in the Pakistani chemical market.
The development has attracted attention within business and investment circles because it marks the departure of a major Japanese investor from Pakistan at a time when the country is attempting to attract foreign capital and revive industrial growth.
Analysts, however, say the transition to local ownership may help ensure operational continuity and reduce uncertainty for the company’s workforce, suppliers and customers. They also note that Engro Polymer remains strategically important for Pakistan’s industrial supply chain, particularly as the country continues to face import pressures and foreign exchange constraints.
Foreign investment trends in Pakistan have remained uneven in recent years due to economic instability, currency volatility and concerns over policy consistency. Despite these challenges, several local conglomerates have expanded their footprints through acquisitions and consolidation in sectors ranging from energy and chemicals to telecommunications and finance.
Market analysts say the latest transaction highlights how domestic firms are increasingly stepping in to fill gaps left by foreign investors exiting or restructuring their regional operations.
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