RIYADH: Saudi Arabia’s business giant, Asyad Holding Group, has acquired 77.42% of the shareholdings and control of Shell Pakistan Limited through Wafi Energy Holding Limited, a United Arab Emirates (UAE) based firm, as stated by the Competition Commission of Pakistan (CCP).
“The Competition Commission of Pakistan 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,” according to the CCP handout.
A spokesperson for the oil marketing company confirmed the CCP had approved the sale of 77.42% shares of Shell Pakistan Limited — a deal that has been underway for at least a year.
“The completion of the sale process may take an additional two months, with shares in the lubricants business also being divested,” the spokesperson said, adding, “However, the Shell brand will continue to exist in the country.”
M/s Shell Pakistan Limited, listed on the Pakistan Stock Exchange, maintains a substantial business footprint in the retail supply of motor fuels and lubricants across the country.
Whereas M/s Wafi Energy LLC is a wholly-owned affiliate of Asyad Holding Group which specialises in the management and operation of fuel stations in Saudi Arabia, the release said.
The Group has established Wafi Energy Holding Limited to expand its investment opportunities in Pakistan.
The CCP’s Phase I competition assessment identified “retail fuel, vehicle lubricants and industrial lubricants” as the relevant product markets.
As per the CCP statement, Shell Pakistan holds 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 a dominant position in the relevant markets even after attaining direct control of Shell Pakistan.
Therefore, the CCP has swiftly authorised the said acquisition under Section 31 of the Competition Act, 2010.
While signing the Order, Chairman CCP, Dr Kabir Ahmed Sidhu said: “This development is expected to boost competition by elevating service standards in the retail fuel supply chain and thus, contribute immensely to flourishing Pakistani markets.”
