CCP okays acquisition of shares in coal firm

Transaction set to contribute to broader development of energy infrastructure

ISLAMABAD:

The Competition Commission of Pakistan (CCP) has granted approval for the acquisition of 11.9% of the paid-up ordinary share capital of Sindh Engro Coal Mining Company (SECMC) by International Electric Power (Private) Limited under a share purchase agreement.

International Electric Power, established in March 2024 for the purpose of purchasing shareholding of SECMC, is jointly owned by Liberty Power Holding, Soorty Enterprises and Procon Engineering.

The target company, SECMC, is a key player in coal mining and supply, while the seller, Engro Energy Limited, a subsidiary of Engro Corporation, serves as a major holding company for energy investments.

In its competition assessment, the CCP identified the relevant market as coal mining. SECMC operates under the regulatory oversight of the Thar Coal Energy Board and the government of Sindh for determining the price of coal for Thar coal-based power plants.

"This transaction strengthens International Electric Power's foothold in the coal mining industry, while SECMC's market share will remain stable post-acquisition," the CCP said in a statement on Monday.

The coal mining sector in Pakistan, particularly in the Thar region, is crucial for the country's energy security and economic growth, given its potential to support large-scale power generation projects.

With International Electric Power's entry into this sector, the transaction is poised to contribute to the broader development of Pakistan's energy infrastructure, enhancing domestic coal production and reducing reliance on imported fuels.

"This strategic move highlights the growing importance of coal mining in shaping the country's energy future," the CCP added.