CCP okays aquisition of Lotte Chemical stake

The Competition Commission of Pakistan (CCP) has approved the acquisition of a majority stake in Lotte Chemical Pakistan Limited by AsiaPak Investments Limited (APIL) and Montage Oil DMCC (MOD).

Under a share purchase agreement with Lotte Chemical Corporation, APIL and MOD will equally divide the acquired shareholding in Lotte Chemical Pakistan.

The CCP has assessed the transaction's impact on the market for purified terephthalic acid (PTA), a key input for the polyester industry. APIL and MOD are not currently involved in the production of PTA. Therefore, the acquisition does not alter the existing market concentration.

The assessment found no horizontal or vertical overlaps between the merging parties. The transaction will not create entry barriers.