By Staff Reporter
ISLAMABAD: Saudi Aramco, the world’s largest oil producer, has entered Pakistan’s fuels retail market with approval from the country’s monopoly watchdog on its acquisition of a 40 percent stake in Gas & Oil Pakistan Ltd.
The transaction, approved by the Competition Commission of Pakistan (CCP), marks Aramco’s first foray into Pakistan’s fuels retail market and underscores its confidence in the country’s economic potential.
Gas & Oil Pakistan Ltd., a licensed oil marketing company, is involved in the procurement, storage, sale, and marketing of petroleum products and lubricants.
Aramco Asia Singapore Pte. Ltd., a Singaporean company wholly owned by Saudi Aramco, filed the pre-merger application with the CCP.
The CCP authorized the merger after determining that the acquisition would not result in the acquirers’ “dominance” in the relevant market post-transaction.
The deal is expected to boost competition, elevate service standards, and provide consumers with a broader range of high-quality products.
“The Competition Commission of Pakistan (CCP) approved a 40 percent equity stake acquisition in Gas & Oil Pakistan Ltd. (GO) by Aramco, a global leader in integrated energy and chemicals,” the CCP said in a statement on Monday. “This transaction marks Aramco’s first entry into Pakistan’s fuels retail market, underscoring its confidence in the country’s economic potential and its commitment to its growth.”
The CCP said it had authorized the merger after determining that the acquisition would not result in the acquirers’ “dominance” in the relevant market post-transaction.
“Aramco’s acquisition indicates a significant milestone in Pakistan’s energy sector, bringing advanced expertise and technology to the fuels retail market,” it said. “This development is expected to boost competition, elevate service standards, and provide consumers with a broader range of high-quality products.”
The CCP said the acquisition would help bring much-needed foreign direct investment in Pakistan’s energy sector, contributing to the economic growth and development of the country.
Pakistan and Saudi Arabia have strong trade, defense, and cultural ties, and both countries have been working to increase bilateral trade and investment deals, with the Kingdom recently reaffirming its commitment to expedite an investment package worth $5 billion.
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