In a recent development, Saudi Group Asyad Holding through UAE-based Wafi Energy Holding Limited has acquired 77.42% shareholdings and control of Shell Pakistan Limited.
Stated in a press release that Competition Commission of Pakistan (CCP) has approved the acquisition under Section 11 of the Competition Act, 2010, thus solidifying the said transaction to boost the retail oil sector in Pakistan.
M/s Shell Pakistan Limited, listed on the Pakistan Stock Exchange, maintains a substantial business footprint in retail supply of motor fuels and lubricants across Pakistan. Whereas, M/s Wafi Energy LLC is a wholly-owned affiliate of Asyad Holding Group which specializes in the management and operation of fuel stations in Saudi Arabia. The Group has established M/s Wafi Energy Holding limited to flex its wings for investment purposes in Pakistan.
The CCP’s Phase I competition assessment identified ‘Retail Fuel, Vehicle Lubricants and Industrial Lubricants’ as the relevant product markets. It was also revealed that Shell Pakistan has distinct shares in all three relevant markets but that will remain unchanged post-transaction.
The analysis further confirmed that Wafi Energy Holding Limited will not gain dominant position in the relevant markets even after attaining the direct control of Shell Pakistan. Therefore, the CCP has swiftly authorized the said acquisition under Section 31 of the Competition Act, 2010.
Chairman CCP, Dr. Kabir Ahmed Sidhu, while signing the Order expressed that this development is expected to boost competition by elevating service standards in the retail fuel supply chain and thus, contribute immensely in flourishing Pakistani markets.
