Saudi Aramco acquires 40% shares in GO Petroleum

29 April 2024 (MLN): The Competition Commission of Pakistan (CCP) approved a 40% equity stake acquisition in Gas & Oil Pakistan Ltd (GO) by Aramco, a global leader in integrated energy and chemicals.

This transaction marks Aramco's first entry into Pakistan's fuels retail market, underscoring its confidence in the country's economic potential and its commitment to its growth.

Aramco Asia Singapore Pte. Ltd., a Singaporean company wholly owned by Saudi Aramco, filed the pre-merger application with the CCP.

The company specializes in sales, marketing, procurement, logistics, and related services, with a focus on prospecting, exploring, drilling, extracting, processing, manufacturing, refining, and marketing hydrocarbon substances.

GO, the target Pakistani company is a licensed oil marketing company operating in Pakistan. It is involved in the procurement, storage, sale, and marketing of petroleum products and lubricants. GO is also a prominent operator of downstream fuels, lubricants, and convenience stores, making it one of Pakistan's largest retail and storage companies.

CCP's merger analysis determined that the acquisition would not result in the acquirers’ dominance in the relevant market post-transaction, leading to the authorization of the merger. This decision aligns with CCP's mission to foster competition and ensure a fair business environment in Pakistan.

Aramco's acquisition indicates a significant milestone in Pakistan's energy sector, bringing advanced expertise and technology to the fuel retail market. This development is expected to boost competition, elevate service standards, and provide consumers with a broader range of high-quality products.

The acquisition will bring in the much-needed foreign direct investment in Pakistan’s energy sector, contributing to economic growth and development.

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