https://arab.news/8x7gk
- Shell’s parent company announced exit from Pakistan last year after selling 77.42 percent of shares to Asyad’s affiliate Wafi Energy
- Competition Commission of Pakistan chairman says acquisition to elevate service standards in country’s retail fuel supply chain
ISLAMABAD: The Competition Commission of Pakistan (CCP) on Saturday approved Saudi Group Asyad Holding’s acquisition of Shell Pakistan through UAE-based Wafi Energy Holding Limited, saying the move would boost the country’s retail oil sector.
Shell Petroleum Company announced its exit from Pakistan in June 2023 with the sale of 77.42 percent shareholding in the local business to Wafi Energy. The move came after Shell made several announcements about its global operations and after Shell Pakistan suffered losses in 2022 due to exchange rates, the devaluation of the Pakistani rupee, and overdue receivables.
Wafi Energy is a wholly-owned affiliate of Asyad Holding Group, a fuel retailer in Saudi Arabia. Shell Pakistan’s operations include more than 600 mobility sites, 10 fuel terminals, a lubricant oil blending plant and a 26 percent shareholding in Pak-Arab Pipeline Company Limited.
“The Competition Commission of Pakistan (CCP) 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,” the CCP said in a press release.
The CCP said Shell Pakistan maintains a “substantial business footprint” in the retail supply of motor fuels and lubricants across Pakistan. It also noted that Wafi Energy specializes in managing and operating fuel stations in Saudi Arabia.
The commission said its first assessment phase identified retail fuel, vehicle lubricants and industrial lubricants as the relevant product markets.
“It was also revealed that Shell Pakistan has distinct shares in all three relevant markets but that will remain unchanged post-transaction,” the CCP said.
“The analysis further confirmed that Wafi Energy Holding Limited will not gain a dominant position in the relevant markets even after attaining the direct control of Shell Pakistan.”
While signing the order, CCP Chairman Dr. Kabir Ahmed Sidhu said the move is expected to boost competition by elevating service standards in the retail fuel supply chain and contribute immensely to flourishing Pakistani markets.