# CCP approves Lotte Chemical's Rs 19.7bn takeover of Engro Polymer, Pakistan's only PVC maker

Source: Searchable (https://searchable.pk/news/business/ccp-approves-lotte-chemicals-rs-197bn-takeover-of-engro-polymer-pakistans-only)
Type: News article
Author: Searchable Editorial
Published: 20 Oct 2026
Updated: 20 Oct 2026
Retrieved: 20 Oct 2026

> The competition regulator found no overlap between Lotte's PTA business and EPCL's PVC, caustic soda and hydrogen peroxide, and cleared the 56% stake sale.

**The Competition Commission of Pakistan (CCP) has approved Lotte Chemical Pakistan's purchase of Engro Corporation's controlling stake in Engro Polymer & Chemicals (EPCL)**, the country's only PVC maker, [Business Recorder reported](https://www.brecorder.com/news/40445120/ccp-greenlights-lotte-chemical-pakistans-stake-acquisition-in-engro-polymer-amp-chemicals) on Tuesday 20 October. The deal, agreed on 1 September, covers Engro's entire **56.19% shareholding at Rs 38.6 a share, worth Rs 19.7 billion**, [ProPakistani reported](https://propakistani.pk/2026/09/01/lotte-chemical-to-buy-engro-polymer-in-rs-19-7-billion-deal/) at the time.

## What the CCP found

The CCP cleared the deal after a Phase-I review under the Competition Act 2010, authorising it under Section 31(1)(d)(i). Its reasoning:

- The markets that matter are **PVC, caustic soda and hydrogen peroxide** in Pakistan.
- Lotte Chemical Pakistan (LCPL), which makes purified terephthalic acid (PTA), the raw material for polyester and PET bottles, **does not operate in any of those markets**.
- Neither LCPL nor its group companies buys from EPCL, so there is no horizontal or vertical overlap.
- EPCL is the sole local PVC maker, but **imports keep it in check**, and in caustic soda and hydrogen peroxide it has smaller shares and real competitors.

The commission said the change of owner does not add capacity or output, so it does not expect higher concentration or new barriers to entry, and concluded the deal is unlikely to substantially lessen competition.

## The deal so far

| Date | Step |
| --- | --- |
| March 2026 | Lotte Chemical Pakistan announces its intention to take control of EPCL, mentioning a possible public offer for a further 17.5% |
| 1 September 2026 | Engro Holdings tells the PSX that Engro Corp will sell its 56.19% to LCPL for Rs 19.7 billion (Rs 38.6 a share) |
| 20 October 2026 | CCP approval reported |

The sale was subject to regulatory approvals and other customary conditions, so other steps under takeover rules may still follow. Neither company has announced a completion date.

## Why it matters

EPCL's PVC goes into the pipes, window frames, cables and flooring used across Pakistan's construction industry, and its caustic soda is a staple input for textiles, soap and paper. Under Lotte, the plant at Port Qasim, Karachi, would sit beside its PTA business in the same industrial zone.

Investors following the stock can track the market on our [KSE-100 page](/data/kse-100). More company news is on our [business desk](/news/business).

## Frequently asked questions

**How much is Lotte Chemical paying for Engro Polymer?**

Rs 19.7 billion for Engro Corporation's 56.19% stake, at Rs 38.6 a share, according to the deal disclosed on 1 September 2026.

## Sources

- CCP greenlights Lotte Chemical Pakistan's stake acquisition in Engro Polymer & Chemicals (Business Recorder): https://www.brecorder.com/news/40445120/ccp-greenlights-lotte-chemical-pakistans-stake-acquisition-in-engro-polymer-amp-chemicals
- Lotte Chemical to buy Engro Polymer in Rs 19.7 billion deal (ProPakistani): https://propakistani.pk/2026/09/01/lotte-chemical-to-buy-engro-polymer-in-rs-19-7-billion-deal/

How to cite: "CCP approves Lotte Chemical's Rs 19.7bn takeover of Engro Polymer, Pakistan's only PVC maker", Searchable, 20 Oct 2026, https://searchable.pk/news/business/ccp-approves-lotte-chemicals-rs-197bn-takeover-of-engro-polymer-pakistans-only