Saudi Firm Acquires Shell Pakistan 

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Authorities gave the green light on Saturday for a Saudi company’s acquisition of Shell Pakistan Ltd. The purchase was finalized a year after the Anglo-Dutch energy giant exited the market. 

With more than 7 million vehicles on the road, Pakistan has a sizeable retail market for fuel and lubricants. Shell Pakistan had been the country’s largest lubricant marketer, with a share of more than 20%. But global corporate restructuring, local currency instability and overdue receivables pushed Shell to sell its Pakistan assets.

UAE-based Wafi Energy bought a 77.42% controlling stake. The company specializes in managing and operating fuel stations in Saudi Arabia. Asyad Holding, a conglomerate based in Saudi Arabia, wholly owns Wafi. 

Shell’s assets in Pakistan included more than 600 retail sites, 10 fuel terminals, a blending plant and a 26% share of the Pak-Arab Pipeline Co. Ltd. The Competition Commission of Pakistan identified the assets covering three main segments – retail fuel, automotive lubricants and industrial lubricants. It noted that Shell Pakistan’s distinct shares in each of these segments would remain unchanged after the acquisition and was satisfied Wafi would not gain an unfair position.

“The Competition Commission of Pakistan has approved the acquisition under Section 11 of the Competition Act, 2010, thereby solidifying the transaction to boost the retail oil sector in Pakistan,” the CCP said in a press release. 

Commission chairman Kabir Ahmed Sidhu said the acquisition will boost competition by raising the standard of service in the retail fuel supply chain and contributing to the growth of Pakistan’s markets. 

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