Saudi group Essaad Holding has acquired 77.42 percent shares and control of Shell Pakistan Limited through UAE-based Wafi Energy Holding Limited.
Aaj News quoted Business Recorder as saying that the Competition Commission of Pakistan (CCP) has approved the purchase of shares under Section 11 of the Competition Act, 2010, to promote the retail oil sector in Pakistan. Hence the above transaction has been consolidated. Shell Pakistan Limited, listed on the Pakistan Stock Exchange, maintains significant business influence in the retail supply of motor fuels and lubricants across Pakistan. While Wafi Energy LLC is a wholly owned subsidiary of Essad Holding Group which specializes in the management and operation of fuel stations in Saudi Arabia. The group has set up Wafi Energy Holding Limited to mobilize its wings for investment purposes in Pakistan.
The Competition Commission of Pakistan’s first phase competition review identified ‘Retail Fuels, Vehicle Lubricants and Industrial Lubricants’ as the relevant product markets. It has also been revealed that Shell Pakistan has separate stakes in the three respective markets but this will not change after the transaction.
In addition, Wafi Energy Holding Limited will not acquire a dominant position in the relevant markets even after gaining direct control of Shell Pakistan. Therefore, the CCP authorized the said acquisition with immediate effect under Section 31 of the Competition Act, 2010. Chairman Competition Commission Dr. Kabir Ahmed Sidhu, while signing the order, said that the development is expected to improve retail fuel supply. By raising service standards in China, competition will be boosted and this will contribute to the flourishing of Pakistani markets.
On the other hand, private TV quoted the spokesperson of Shell Pakistan as saying that the sale process has been going on for a year and it may take another 2 months to complete. The spokesperson said that the lubricant business shares are also being sold, the Shell brand will continue to exist.
