ISLAMABAD (PEN) : The Competition Commission of Pakistan (CCP) has approved a significant merger in the steel industry with global implications. The deal involves EP Corporate Group (EPCG) acquiring substantial stakes in Thyssenkrupp’s subsidiaries.
According to the Investment Agreement signed in April 2024, EPCG will acquire a 20% share in Thyssenkrupp Dritte Beteiligungsgesellschaft mbH and a 19.99% stake in Thyssenkrupp Vierte Beteiligungsgesellschaft mbH.
These two Thyssenkrupp subsidiaries collectively manage Thyssenkrupp Steel Europe AG, which operates in Pakistan by selling grain-oriented electrical steel. Thyssenkrupp Steel Europe AG is engaged in producing, processing, distributing, and selling flat carbon steel products with an integrated production chain. In contrast, EPCG is a holding company based in the Czech Republic.
The CCP’s competition review concentrated on the ‘grain-oriented electrical steel’ sector. The assessment showed that Thyssenkrupp Steel Europe AG’s market share in Pakistan is minimal and will remain unchanged by the merger, thus avoiding any market dominance.
The CCP expects this merger to attract foreign investment, boost local steel production, and support Pakistan’s industrial growth and economic stability. Dr. Kabir Ahmed Sidhu, Chairman of the CCP, highlighted that the merger is anticipated to open new market opportunities, foster technological advancements, and enhance competitiveness in Pakistan’s steel industry. This move is projected to contribute significantly to the country’s economic development by driving innovation and efficiency.
