The Competition Commission of Pakistan (CCP) approved Saudi Group Asyad Holding’s acquisition of Shell Pakistan through UAE-based Wafi Energy Holding Limited on Saturday. The CCP stated that this move would enhance the country’s retail oil sector.
Shell Petroleum Company announced its exit from Pakistan in June 2023, selling its 77.42 percent shareholding in the local business to Wafi Energy. This decision followed several global operational announcements by Shell and the losses Shell Pakistan faced in 2022 due to exchange rate fluctuations, the devaluation of the Pakistani rupee, and overdue receivables.
Wafi Energy, a wholly-owned affiliate of Asyad Holding Group—a fuel retailer in Saudi Arabia—will take over Shell Pakistan’s operations, which 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, thereby solidifying the transaction to boost the retail oil sector in Pakistan,” the CCP said in a press release.
The CCP highlighted that 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’s 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, which will remain unchanged post-transaction,” the CCP stated.
“The analysis further confirmed that Wafi Energy Holding Limited will not gain a dominant position in the relevant markets even after acquiring direct control of Shell Pakistan.”
CCP Chairman Dr. Kabir Ahmed Sidhu said the move is expected to boost competition by raising service standards in the retail fuel supply chain and contribute significantly to the growth of Pakistani markets.
