The Competition Commission of Pakistan (CCP) has given the green light for Aramco, a global energy and chemicals leader, to acquire a 40% equity stake in Gas & Oil Pakistan Ltd (GO). This move marks Aramco’s inaugural entry into Pakistan’s fuels retail sector, showcasing its confidence in the nation’s economic prospects and its dedication to fostering growth.
Aramco Asia Singapore Pte Ltd, a wholly-owned subsidiary of Saudi Aramco based in Singapore, filed the pre-merger application with the CCP. The company specializes in various aspects of the energy industry, including sales, marketing, procurement, logistics, and hydrocarbon-related activities.
GO, the targeted Pakistani firm, operates as a licensed oil marketing company, engaging in the procurement, storage, and sale of petroleum products and lubricants. It is also a major player in downstream fuels, lubricants, and convenience store operations, solidifying its position as a key player in Pakistan’s retail and storage landscape.
The CCP’s merger assessment concluded that the acquisition would not lead to post-transaction dominance by the acquirer in the relevant market, paving the way for the merger’s approval. This decision aligns with CCP’s mandate to promote competition and ensure a fair business environment.
Aramco’s investment signifies a significant milestone in Pakistan’s energy sector, bringing advanced technology and expertise to the fuels retail market. This development is anticipated to enhance competition, elevate service standards, and offer consumers a wider array of top-quality products.
The acquisition is poised to attract crucial foreign direct investment into Pakistan’s energy domain, fostering economic growth and progress. Additionally, this strategic move aligns with Aramco’s global downstream expansion strategy, enhancing its refining, marketing, lubricants, trading, and chemicals portfolio on an international scale.
Story by Sohail Sarfaraz
