Three mergers approved by CCP in steel sector

Three mergers have been approved by the Competition Commission of Pakistan
(CCP) associated with M/s Saudi Iron and Steel Company (Hadeed) having a hold
in the Pakistan steel market. Hadeed is a very well known and well established
Saudi company producing a wide range of steel products and trading in spot sales
in the Pakistan steel market.
The merger approval was acquired in three steps. Primarily The Public Investment
Fund (PIF) had sent a pre merger application to CCP for the reception of a
Hundred percent shares of Hadeed from M/s Saudi Arabia Basic Industries
Corporation (SABIC). Secondly, Hadeed was supposed to acquire 100 percent
shareholding pf Al Rajhi Steel industries Company from M/s Muhammad bin
Abdul Aziz at Al Rajhi and sons investment. Lastly, PIF intends to dispose off its
44.5% shareholding in Hadeed to M/s Mohammad Bin Abdulaziz Al Rajhi & Sons
Investment; thus sharing control over Hadeed and Al Rajhi Steel for improving
their respective production capabilities and increasing their operational
efficiency.
These investments are not to be a basis for creation of any sort of competition
between the companies whatsoever. Steel sector of Pakistan is one of the
primarily significant industries as it plays an important role with major
investments and in raising the GDP of the country.