The Competition Commission of Pakistan (CCP) has granted approval for the merger of a Korean firm with Mira Power Limited (MPL), as reported by Business Recorder on Monday.
The merger involves Korea-based DL E&C Co. Ltd acquiring shares in MPL, the operator of the 102 MW Gulpur hydropower plant, from DL Holdings Co. Ltd.
CCP conducted a competition assessment and determined that MPL’s market share is less than 1%, and the change in ownership will not significantly alter MPL’s position in the market.
A spokesperson for CCP stated, “The proposed merger will not result in the dominance of the acquiring company in the relevant market, and thus, the merger has been authorized.” They added, “This approval also signifies the confidence of international investors in Pakistan’s Power Sector.”
DL E&C Co. Ltd, the acquiring company, is a Korean construction firm that also provides engineering and construction solutions globally. MPL, on the other hand, is a Pakistani public limited company and a subsidiary of Korea Energy (KOEN), a South Korean electricity generating company.
MPL has been operating the Gulpur hydropower plant in Kotli district, Azad Jammu & Kashmir, since 2020, successfully generating power.
The merger process began when MPL submitted a pre-merger application to CCP under Section 11 of the Competition Act, 2010. The Share Purchase Agreement between the Acquirer and Seller was finalized in July 2023.
Story by Bilal Hussain
