CCP agrees to takeover of wind energy producer by artistic mods

The Competition Commission of Pakistan (CCP) has approved the acquisition of 100 percent stake in M/s Tenaga Generasi Limited (TGL), an independent power producer with a 49.5 MW wind power plant, by M/s Artistic Milliners (Private) Limited ( AMPL) , one of the leading denim producers in the world.

The Malaysian company Tenaga Generasi Limited was founded in Pakistan in 2004 to build a 50 MW wind farm. The company has been allotted 1,200 acres of land in Gharo district of Sindh for the project. NEPRA issued a Generation License to TGL for a period of 20 years.

In January 2008, the company decided to exit Pakistan and TGL was acquired by Dawood Lawrencepur Limited (DLL), which held 75% of the shares in TGL and the remaining shares were held by the International Finance Corporation (IFC), a member of the World Bank Group.

CCP’s Phase I competitive assessment identified “Renewable Energy – Wind Power Generation” as the relevant market. The assessment showed that TGL’s market share is just under 3 percent, while AMPL’s two subsidiaries have a combined market share of 5.38 percent. Post-transaction, AMPL’s market share is expected to increase to around 8 percent. Taking into account that the transaction does not lead to the buyer’s dominance in the relevant market, CCP agreed to the acquisition.

This approval allows Artistic Milliners to increase its presence in the renewable energy sector. The acquisition highlights the potential for joint development of renewable energy, significantly contributing to redefining the national energy landscape.