February 21, 2024 (MLN): The Competition Commission of Pakistan (CCP) has approved a merger that will see a Korean company investing in Pakistan's hydropower sector, according to a press release issued by the commission.
The transaction involves Korea-based DL E&C Co. Ltd (Acquirer) acquiring shares in Pakistani company Mira Power Limited (MPL), which operates the 102 MW Gulpur hydropower plant, from M/s. DL Holdings Co. Ltd (Seller).
The Acquirer is a Korean registered company, that mainly operates as a construction company, and also provides engineering, procurement, and construction solutions in South Korea and internationally.
On the other hand, MPL is a public limited company (Unlisted) existing under the laws of Pakistan.
MPL is a subsidiary of Korea Energy (KOEN), a South Korean-based electricity generating company. MPL has been successfully generating power since 2020 in Pakistan via the 102 MW Gulpur hydropower plant located in Kotli district, Azad Jammu & Kashmir.
MPL had submitted a pre-merger application to the CCP pursuant to Section 11 of the Competition Act, 2010. Both the Acquirer and Seller entered into a Share Purchase Agreement for the sale of shares back in July 2023.
In its competition assessment, CCP determined that MPL’s estimated share in the market is less than 1%, and this transfer of ownership will not result in any modification of the MPL`s presence in the market.
The proposed transaction will not lead to the dominance of the Acquirer in the relevant market post-transaction, and therefore, the merger was authorized.
Moreover, it is a significant vote of confidence of international investors’ appetite for the Power Sector in Pakistan.
