Competition commission approves Saudi group Asyad’s acquisition of Shell Pakistan 

Petrol station workers wearing facemasks wait for customers next to petrol pumps in Islamabad, Pakistan, on April 22, 2020. (AFP/File)
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Updated 07 July 2024
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Competition commission approves Saudi group Asyad’s acquisition of Shell Pakistan 

  • Shell’s parent company announced exit from Pakistan last year after selling 77.42 percent of shares to Asyad’s affiliate Wafi Energy
  • Competition Commission of Pakistan chairman says acquisition to elevate service standards in country’s retail fuel supply chain 

ISLAMABAD: The Competition Commission of Pakistan (CCP) on Saturday approved Saudi Group Asyad Holding’s acquisition of Shell Pakistan through UAE-based Wafi Energy Holding Limited, saying the move would boost the country’s retail oil sector. 

Shell Petroleum Company announced its exit from Pakistan in June 2023 with the sale of 77.42 percent shareholding in the local business to Wafi Energy. The move came after Shell made several announcements about its global operations and after Shell Pakistan suffered losses in 2022 due to exchange rates, the devaluation of the Pakistani rupee, and overdue receivables. 

Wafi Energy is a wholly-owned affiliate of Asyad Holding Group, a fuel retailer in Saudi Arabia. Shell Pakistan’s operations include more than 600 mobility sites, 10 fuel terminals, a lubricant oil blending plant and a 26 percent shareholding in Pak-Arab Pipeline Company Limited.

“The Competition Commission of Pakistan (CCP) has approved the acquisition under Section 11 of the Competition Act, 2010, thus solidifying the said transaction to boost the retail oil sector in Pakistan,” the CCP said in a press release. 

The CCP said Shell Pakistan maintains a “substantial business footprint” in the retail supply of motor fuels and lubricants across Pakistan. It also noted that Wafi Energy specializes in managing and operating fuel stations in Saudi Arabia.

The commission said its first assessment phase identified retail fuel, vehicle lubricants and industrial lubricants as the relevant product markets. 

“It was also revealed that Shell Pakistan has distinct shares in all three relevant markets but that will remain unchanged post-transaction,” the CCP said. 

“The analysis further confirmed that Wafi Energy Holding Limited will not gain a dominant position in the relevant markets even after attaining the direct control of Shell Pakistan.”

 While signing the order, CCP Chairman Dr. Kabir Ahmed Sidhu said the move is expected to boost competition by elevating service standards in the retail fuel supply chain and contribute immensely to flourishing Pakistani markets.
 


Pakistan says it backs Gaza peace plan, hopes next phase leads to Palestinian state

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Pakistan says it backs Gaza peace plan, hopes next phase leads to Palestinian state

  • Foreign Office says it is not concerned about who joins or stays out of the Abraham Accords
  • Pakistan reaffirms rejection of Israel’s recognition of Somaliland, warns of regional instability

ISLAMABAD: Pakistan’s Foreign Office said on Thursday it supported the Gaza peace plan endorsed by the United Nations Security Council, expressing hope its next phase would stabilize the situation in the war-ravaged territory, scale up humanitarian assistance and lead to an independent Palestinian state.

The United States said on Wednesday it was moving into the next phase of a Gaza ceasefire plan. President Donald Trump’s Middle East envoy Steve Witkoff said in a post on X that the second phase will establish “a transitional technocratic Palestinian administration in Gaza” and mark the beginning of “the full demilitarization and reconstruction of Gaza, primarily the disarmament of all unauthorized personnel.”

Commenting on the development, Foreign Office Spokesperson Tahir Andrabi said Pakistan had taken note of the announcement.

“We have seen this social media post about the next phase of the ceasefire agreement in Gaza, and we express the hope that these steps will lead to further stabilization of the situation, and upscaling the humanitarian assistance and end of the sacrifices of the people,” he said while addressing his weekly news conference.

Andrabi said Pakistan had been engaged in the Gaza peace effort as part of a group of Arab and Islamic countries since the initiative was presented by the US president and supported both the plan and the UN Security Council resolution endorsing it.

“We also hope that these efforts will lead to a credible time bound, political process consistent with international legitimacy and relevant UN resolutions to establish an independent, sovereign, contiguous state of Palestine, based on pre-1967 borders with East Jerusalem as its capital,” he added.

Asked about Pakistan’s position on the Abraham Accords, a series of US-brokered agreements normalizing relations between Israel and several Arab states, Andrabi said Islamabad’s stance remained unchanged.

“Our position with respect to it is that there are certain benchmarks that have to be achieved ... And [these relate do] a viable, contiguous state of Palestine, with East Jerusalem as its capital.”

He said Pakistan did not judge other countries’ choices on the accords.

“We are not concerned about who does or who does not join the Abraham Accords,” he said.

SOMALILAND ISSUE

Earlier in his opening remarks, Andrabi reiterated Pakistan’s rejection of Israel’s recognition of Somaliland, a self-declared breakaway region of Somalia, calling the move illegal and warning it could destabilize the Horn of Africa and Red Sea region.

Somaliland declared independence from Somalia in 1991 but is not recognized by the United Nations or the African Union.

Israel’s recent steps to recognize the territory have drawn criticism from Somalia and several Muslim-majority countries.

Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar raised the issue during the 22nd Extraordinary Session of the Organization of Islamic Cooperation Council of Foreign Ministers held in Jeddah on Jan. 10.

“In his address, the DPM-FM strongly condemned the illegal and unlawful recognition by Israel of the Somaliland region, as well as subsequent unwarranted and highly provocative visits of Israeli officials to the territory,” the Foreign Office spokesman said.

“He termed such acts as political aggression and a direct assault on Somalia’s internationally recognized borders, setting a perilous precedent and threatening peace and security in the Horn of Africa, the Red Sea region, and beyond.”

Andrabi said Dar also addressed the Palestinian issue during the session, rejecting proposals for the displacement of Palestinians and reaffirming Pakistan’s long-standing support for a two-state solution.