https://arab.news/8x7gk
- Shell鈥檚 parent company announced exit from Pakistan last year after selling 77.42 percent of shares to Asyad鈥檚 affiliate Wafi Energy
- Competition Commission of Pakistan chairman says acquisition to elevate service standards in country鈥檚 retail fuel supply chain聽
ISLAMABAD: The Competition Commission of Pakistan (CCP) on Saturday approved Saudi Group Asyad Holding鈥檚 acquisition of Shell Pakistan through UAE-based Wafi Energy Holding Limited, saying the move would boost the country鈥檚 retail oil sector.
Shell Petroleum Company announced its exit from Pakistan in June 2023 with the sale of 77.42 percent shareholding in the local business to Wafi Energy. The move came after Shell made several announcements about its global operations and after Shell Pakistan suffered losses in 2022 due to exchange rates, the devaluation of the Pakistani rupee, and overdue receivables.
Wafi Energy is a wholly-owned affiliate of Asyad Holding Group, a fuel retailer in 抖阴短视频. Shell Pakistan鈥檚 operations include more than 600 mobility sites, 10 fuel terminals, a lubricant oil blending plant and a 26 percent shareholding in Pak-Arab Pipeline Company Limited.
鈥淭he 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,鈥� the CCP said in a press release.
The CCP said Shell Pakistan maintains a 鈥渟ubstantial business footprint鈥� in the retail supply of motor fuels and lubricants across Pakistan. It also noted that Wafi Energy specializes in managing and operating fuel stations in 抖阴短视频.
The commission said its first assessment phase identified retail fuel, vehicle lubricants and industrial lubricants as the relevant product markets.
鈥淚t was also revealed that Shell Pakistan has distinct shares in all three relevant markets but that will remain unchanged post-transaction,鈥� the CCP said.
鈥淭he analysis further confirmed that Wafi Energy Holding Limited will not gain a dominant position in the relevant markets even after attaining the direct control of Shell Pakistan.鈥�
While signing the order, CCP Chairman Dr. Kabir Ahmed Sidhu said the move is expected to boost competition by elevating service standards in the retail fuel supply chain and contribute immensely to flourishing Pakistani markets.