Lotte Chemical Pakistan Limited (LCPL) today announced the signing of a Share Purchase Agreement (SPA) to acquire Engro Corporation Limited’s 56.19% shareholding in Engro Polymer & Chemicals Limited (EPCL) at an aggregate consideration price of Rs 19.7 billion (Rs 38.6 per share). Following completion of the transaction, LCPL will undertake a mandatory public tender offer to the remaining shareholders of EPCL in accordance with applicable laws and regulations. Subject to all required regulatory approvals, LCPL intends to merge EPCL into LCPL, creating a scaled, diversified and globally competitive petrochemical company.
This landmark transaction represents a significant development in Pakistan’s petrochemical industry and marks a major milestone in LCPL’s long-term strategy to build a stronger, more diversified, and globally competitive petrochemical platform. The combination will bring together Pakistan’s sole producer of Purified Terephthalic Acid (PTA) and the country’s sole integrated Chlor-Vinyl complex, creating a diversified petrochemical platform with an expanded portfolio that includes PTA, PVC, Caustic Soda, Hydrogen Peroxide, Sodium Hypochlorite (HYPO), Hydrochloric Acid (HCL), Acetic Acid, and other value-added chemical products.
The proposed combination is expected to generate substantial synergies through energy optimization, operational excellence, procurement efficiencies, supply chain integration, shared technical capabilities, and improved utilization of manufacturing assets. The key value creation opportunity lies in enabling EPCL’s transition from expensive captive gas-based power generation to a more economical grid power supply, complemented by renewable energy initiatives. This transformation is expected to significantly enhance EPCL’s long-term competitiveness while supporting Pakistan’s sustainability objectives.
The transaction also creates a more resilient business by diversifying LCPL beyond a single-product portfolio. PTA and PVC have historically demonstrated different market cycles, reducing earnings volatility and strengthening the combined company’s ability to deliver sustainable long-term performance. The enhanced scale, stronger balance sheet, broader product portfolio, and increased management capabilities will position the combined organization to pursue future brownfield and greenfield expansion opportunities while supporting Pakistan’s growing industrial sector.
Beyond corporate benefits, the acquisition is expected to generate substantial national economic value. The integrated platform will strengthen Pakistan’s petrochemical value chain by reducing dependence on imports, supporting downstream manufacturing industries, attracting future foreign direct investment, and creating new direct and indirect employment opportunities.
Chairman of Lotte Chemical Pakistan Limited, Dr Imtiaz Ahmed, said: “The acquisition of EPCL represents a transformational milestone in LCPL’s history and demonstrates our unwavering confidence in Pakistan’s economic future. This transaction is not merely an acquisition – it is a strategic investment in Pakistan’s industrial future.”
Chief Executive Officer of Lotte Chemical Pakistan Limited, Mr. Adnan Afridi added: “This combination creates a stronger platform for sustainable growth, operational excellence, and innovation. The identified synergies, coupled with the complementary strengths of both businesses, will enhance our competitiveness while enabling us to deliver greater value to our customers and stakeholders. We remain committed to investing in our people, digital transformation, technology, sustainability, operational excellence, and future expansion projects that will strengthen Pakistan’s manufacturing base and contribute to long-term economic development.”
Chief Executive Officer of Engro Corporation, Mr. Ahsan Zafar Syed, remarked: “Engro is pleased with the role we have played in EPCL’s journey since 1997; we believe the proposed transaction would allow us to realize the value and learnings created through that journey while positioning the business to benefit from the synergies of a broader petrochemicals platform. At the same time, the transaction would enhance our ability to pursue new investment opportunities in line with our responsibility to continually assess where capital can create the greatest value.”
LCPL extends its sincere appreciation to its shareholders, employees, customers, suppliers, financial advisors, legal advisors, regulatory authorities, and all stakeholders whose continued trust, support, and collaboration have made this strategic milestone possible.
The transaction remains subject to the completion of the mandatory public tender offer, satisfaction with customary closing conditions, and receipt of all applicable regulatory and legal approvals, including those required by the relevant authorities.
