Saudi Group Secures Stake, Invests in Retail Oil Sector in Pakistan

Saudi Group Secures Stake, Invests in Retail Oil Sector in Pakistan

Saudi Arabia’s Asyad Holding Group has successfully secured a controlling stake in Shell Pakistan Limited. The Competition Commission of Pakistan (CCP) granted approval for this acquisition, allowing Asyad Holding to acquire a dominant 77.42 percent ownership and control of Shell Pakistan.

Enhanced Competition Expected in Retail Fuel Sector

Market analysts anticipate this acquisition will inject a healthy dose of competition into Pakistan’s retail fuel sector. Asyad Holding, a leading fuel station operator in Saudi Arabia, is expected to leverage its extensive experience to elevate service standards across Shell Pakistan’s wide-reaching network.

Shell Pakistan, a well-established entity listed on the Pakistan Stock Exchange, maintains a significant footprint in the retail supply of motor fuels and lubricants nationwide.

CCP Grants Approval Following In-Depth Review

The CCP conducted a thorough assessment to determine the potential impact of the acquisition on market competition. Their analysis identified “Retail Fuel,” “Vehicle Lubricants,” and “Industrial Lubricants” as the relevant product markets.

The commission concluded that while Shell Pakistan currently holds a distinct share in each of these markets, those shares will remain unchanged following the acquisition.

Furthermore, the CCP’s evaluation confirmed that Asyad Holding’s acquisition will not result in a dominant market position. This finding played a critical role in the CCP’s swift approval of the deal under Section 31 of the Competition Act, 2010.

Positive Outlook for Pakistani Consumers

Dr. Kabir Ahmed Sidhu, Chairman of the CCP, expressed a positive outlook on the potential benefits for Pakistani consumers. He anticipates that Asyad Holding’s involvement will lead to an improvement in service standards within the retail fuel supply chain, ultimately contributing to a more prosperous Pakistani market.

This development signifies a positive step for Pakistan’s economic growth, paving the way for a more competitive and potentially more efficient retail fuel sector.

The acquisition of Shell Pakistan by Asyad Holding Group marks a significant development in the country’s retail fuel industry. With the CCP’s approval, the transition is expected to foster healthy competition and improve service quality for consumers across Pakistan.

As Asyad Holding brings its expertise to the Pakistani market, there is optimism for enhanced service standards and a more competitive environment in the retail fuel sector.