CCP Approves Asyad Holding's Acquisition of Shell Pakistan

The Competition Commission of Pakistan (CCP) has given the green light to the acquisition of Shell Pakistan by Saudi Group Asyad Holding through UAE-based Wafi Energy Holding Limited. This move is set to bolster the retail oil sector in Pakistan. Shell Petroleum Company's decision to sell its majority share to Wafi Energy was influenced by global operational changes and financial challenges faced by Shell Pakistan in 2022, leading to its exit from Pakistan in June 2023.

Wafi Energy, a subsidiary of Asyad Holding Group and a prominent fuel retailer in Saudi Arabia, will now oversee Shell Pakistan's operations, which include various mobility sites, fuel terminals, a lubricant oil blending plant, and a shareholding in Pak-Arab Pipeline Company Limited. The CCP's approval under Section 11 of the Competition Act, 2010, cements this acquisition, with the aim of enhancing Pakistan's retail oil sector.

The CCP acknowledged Shell Pakistan's significant role in the retail supply of motor fuels and lubricants across the country. On the other hand, Wafi Energy's expertise lies in managing and operating fuel stations in Saudi Arabia. The commission's evaluation focused on retail fuel, vehicle lubricants, and industrial lubricants as the relevant markets, ensuring that Shell Pakistan's market shares in these sectors will remain unaffected post-acquisition.

CCP Chairman Dr. Kabir Ahmed Sidhu highlighted that this acquisition will foster competition, raise service standards in the retail fuel supply chain, and contribute to the growth of Pakistani markets.

The approval of the acquisition of Shell Pakistan by Wafi Energy Holding signifies a significant development in Pakistan's retail oil sector. This strategic move is poised to bring about positive changes in the industry, promoting healthy competition and enhancing service quality for consumers. With Wafi Energy's expertise and the CCP's oversight, the future looks promising for the retail oil market in Pakistan.