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CCP approves Artistic Milliners’ acquisition of Tenaga Generasi Ltd

CCP approves Artistic Milliners' acquisition of Tenaga Generasi Ltd
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June 11, 2024 (MLN): The Competition Commission of Pakistan (CCP) has approved the acquisition of 100% shareholding of Tenaga Generasi Limited (TGL), an independent power producer with a 49.5 MW wind power plant, by Artistic Milliners (Private) Limited (ADMM), one of the world's top denim manufacturers.

Tenaga Generasi Limited, a Malaysian company, was incorporated in Pakistan in 2004 to set up a 50 MW wind power plant.

The company was allocated 1,200 acres of land in District Gharo, Sindh, for the project. NEPRA issued a Generation License to TGL with an initial validity of 20 years.

In January 2008, the company decided to exit Pakistan, and TGL was acquired by Dawood Lawrencepur Limited (DLL), which held a 75% stake in TGL, with the remaining shareholding held by the International Finance Corporation (IFC), a member of the World Bank Group.

The Phase-I competition assessment by the CCP identified 'Renewable Energy – Wind Power Generation' as the relevant market.

The assessment revealed that TGL’s share in the market is less than 3%, while AMPL’s two subsidiaries collectively hold a market share of 5.38%.

Post-transaction, AMPL's market share is expected to rise to approximately 8%. Given that the transaction does not lead to the dominance of the acquirer in the relevant market, the CCP has approved the acquisition.

This approval allows Artistic Milliners to increase its presence in the renewable energy sector.

The acquisition underscores the potential for collaborative advancements in renewable energy, contributing significantly to redefining the national energy landscape.

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Posted on: 2024-06-11T11:24:25+05:00