KARACHI – Mitsubishi Corporation decided to exit its long-standing investment in Engro Polymer and Chemicals Limited (EPCL), marking the end of a decades-long Japanese presence.
The move comes after Competition Commission of Pakistan (CCP) gave the green signal to a major share acquisition deal, clearing the way for Mitsubishi’s complete divestment from EPCL. The decision has triggered attention in business circles, as it signals yet another high-profile multinational withdrawal from Pakistan’s industrial base.
Although Mitsubishi’s operational footprint in Pakistan was never among largest compared to other global corporations, its stake in EPCL represented a strategically important foreign investment in the country’s petrochemical and manufacturing sector. With completion of this 2026 exit, Mitsubishi’s direct involvement in EPCL has now come to an end—fueling broader debate about the growing trend of multinational pullbacks from Pakistan’s economy.
CCP approved transaction after a Phase I review under the Competition Act, 2010. Under the deal structure, Liberty Daharki Power Limited will acquire Mitsubishi Corporation’s shareholding in EPCL, alongside Seagreen Enterprises (Private) Limited.
According to regulator, the acquisition raises no competition concerns. Officials noted there is no horizontal overlap between the buyer and seller, meaning the transaction will not disturb market balance or alter industry concentration. The review covered major industrial chemical segments including PVC, caustic soda, and hydrogen peroxide.
EPCL, a subsidiary of Engro Corporation, stands as one of Pakistan’s leading producers of polyvinyl chloride (PVC) and other essential chemicals widely used in construction and industrial manufacturing. The acquiring entity, Liberty Daharki Power Limited, operates in the energy sector and runs a natural gas-fired power plant in Sindh—highlighting a shift in ownership from multinational industrial hands to local energy players.
CCP concluded that the deal will not result in any dominant market position or create conditions that could harm competition. It also ruled out risks of collusion or market foreclosure, approving the transaction under Section 31(1)(d)(i) of the Competition Act, 2010.
Market observers have taken keen interest in the development, viewing it as the formal exit of a major Japanese investor from Pakistan’s chemical sector. While the transition marks the end of Mitsubishi’s direct equity involvement, analysts suggest the change in ownership is unlikely to disrupt operations, with expectations of continuity under new management.
Mitsubishi Corporation maintained presence in Pakistan for decades through investments, joint ventures, and representative offices. Its most prominent position was in EPCL, where it held around 11% equity in a joint venture originally formed with Engro and Asahi Glass.
The development has been widely discussed as part of a broader wave of multinational companies scaling back operations or restructuring their exposure in Pakistan. Analysts and commentators point to persistent economic pressures—including inflation, currency instability, rising energy costs, and broader global portfolio realignments—as contributing factors behind such exits.
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