ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved Lotte Chemical Pakistan Limited’s proposed acquisition of a shareholding in Engro Polymer & Chemicals Limited from Engro Corporation Limited, concluding that the transaction is unlikely to substantially lessen competition or strengthen a dominant market position.
The approval was granted following a Phase-I competition assessment under the Competition Act, 2010, according to a CCP announcement issued on October 20, 2026.
Lotte Chemical Pakistan Limited is engaged in the manufacturing and supply of purified terephthalic acid (PTA), a key raw material used in polyester and polyethylene terephthalate (PET) production. Engro Polymer & Chemicals Limited manufactures polyvinyl chloride (PVC), caustic soda, hydrogen peroxide and other chlor-alkali products.
During its assessment, the commission identified PVC, caustic soda and hydrogen peroxide as the relevant product markets, with Pakistan defined as the relevant geographic market.
The CCP found that Lotte Chemical Pakistan does not operate in any of these markets. It also noted that neither Lotte Chemical Pakistan nor its associated, affiliated or group companies purchase products from Engro Polymer. Consequently, the proposed acquisition creates neither horizontal overlap between competing businesses nor vertical overlap between companies operating at different stages of the supply chain.
Assessing the competitive structure of the relevant markets, the commission observed that Engro Polymer is Pakistan’s sole domestic manufacturer of PVC, while imports provide an important competitive constraint. In the caustic soda and hydrogen peroxide markets, Engro Polymer has comparatively lower market shares and faces competition from other market participants.
The commission further observed that the proposed transaction would change the ownership and control of Engro Polymer without, in itself, increasing the company’s production capacity, sales or output.
Based on these findings, the CCP concluded that the acquisition is not expected to increase market concentration, create barriers to entry or materially enhance the market power of either party. It determined that the transaction was unlikely to substantially lessen competition or create or strengthen a dominant position in any of the identified markets.
The transaction was accordingly authorised under Section 31(1)(d)(i) of the Competition Act, 2010.
The approval allows the proposed ownership transaction to proceed from the competition-law perspective, subject to any other applicable legal or regulatory requirements. The CCP said its approach seeks to facilitate investment and corporate transactions while safeguarding competition, market efficiency and consumer welfare.
