Key Points
- Pakistan’s Competition Commission approves acquisition of shares in Canadian-listed oil and gas company.
- Foreign investor increases parent-level ownership, leaving local operations intact.
- Acquisition seen as positive signal for Pakistan’s energy sector and foreign investment.
ISLAMABAD: Pakistan’s Competition Commission has authorised a foreign investment company to increase its ownership in Jura Energy Corporation, a Canadian-listed oil and gas company with operations in Pakistan.
The regulator concluded the transaction is unlikely to affect competition in the country’s upstream oil and gas market.
Jura Energy operates in Pakistan through wholly owned subsidiaries that hold stakes in multiple exploration and production licenses across the country.
The acquisition involved the purchase of additional shares from another foreign investment firm, effectively boosting the acquiring company’s stake at the parent level without altering day-to-day operations on the ground.
The CCP conducted a competition assessment and determined that the deal does not create horizontal or vertical integration in the Pakistani market and does not strengthen a dominant market position.
Authorities also highlighted that companies must comply with pre-merger regulatory approvals in future transactions.
Analysts say the acquisition signals continued international confidence in Pakistan’s energy sector, which is crucial for the country’s energy security and economic growth. The move underscores Pakistan’s commitment to attracting foreign investment while maintaining a competitive upstream oil and gas market.
Accordingly, the Commission authorised the transaction under Section 31(1)(d)(i) of the Competition Act, 2010.
During the proceedings, the CCP also noted that the transaction had been completed without prior obtaining the Commission’s approval as required under the merger control regime.
The parties were directed to ensure strict compliance with the pre-merger approval requirements of the Competition Act and the Competition (Merger Control) Regulations, 2016, in future transactions.
