December 27, 2024 (MLN): The Competition Commission of Pakistan (CCP) has authorized the acquisition of a 100% stake in Gallant Energy (Private) Limited by Gul Ahmed Holdings (Private) Limited.
The transaction, carried out under a Share Purchase Agreement, marks a significant development in the energy sector.
Gul Ahmed Holdings (Private) Limited, is a private limited company, primarily focused on investment activities across various sectors.
Gallant Energy (Private) Limited, specializes in the filling and distribution of liquefied petroleum gas (LPG), a vital energy source for households and industries in Pakistan.
The CCP has defined the relevant product market for this transaction as ‘Liquefied Petroleum Gas (LPG)’.
According to the information provided, Gallant Energy currently holds a market share of less than 1% in the LPG sector.
After the acquisition, the market share of Gul Ahmed Holdings is expected to see only a slight increase, indicating minimal impact on the overall market dynamics.
The CCP’s assessment has confirmed that the proposed transaction would not lead to the creation or enhancement of a dominant position in the relevant market, as defined under Section 2(1)(e) read with Section 11 of the Competition Act, 2010, and the Merger Regulations.
By authorizing this transaction under Section 31(1)(d)(i) of the Competition Act, the CCP reaffirms its commitment to safeguarding fair competition and promoting efficiency in Pakistan’s LPG market.
The CCP will continue to monitor market activities to ensure that competition thrives across all sectors, benefiting both businesses and consumers in Pakistan.
