KARACHI: Engro Corp. has agreed to sell its entire stake in Engro Polymer & Chemicals Ltd. to Lotte Chemical Pakistan Ltd. for approximately Rs19.7 billion, the company said Tuesday, a move that would consolidate two major players in the country’s petrochemicals sector.
Under the share purchase agreement, Engro will divest its 56.19% holding in EPCL, a business it has owned since 1997. The transaction is subject to regulatory approvals.
Shares of both companies rose in early trading Tuesday, with EPCL climbing 2.11% and Lotte Chemical Pakistan gaining 2.88%.
EPCL operates Pakistan’s only integrated chlor-vinyl complex, producing PVC resin, caustic soda and hydrogen peroxide for downstream industries. The company has also served as a training ground for engineering talent in the manufacturing sector, according to Engro.
The proposed sale follows a broader restructuring at Engro Group in 2025, which created Engro Holdings as the conglomerate’s investment arm. Since then, Engro Holdings has executed several major deals, including the $562 million Deodar transaction, one of Pakistan’s largest private-sector agreements in more than a decade.
“EPCL has been one of Engro’s flagship businesses,” said Abdul Samad Dawood, CEO of Engro Holdings, in a statement. “For nearly three decades, we have partnered with leading international companies to build capabilities, strengthen operations and contribute to Pakistan’s industrial development. We believe the proposed transaction would allow us to realize the value and learnings created through that journey while unlocking synergies for EPCL within a larger petrochemicals platform.”
Lotte Chemical Pakistan CEO Adnan Afridi said the combination would create a stronger platform for sustainable growth and operational excellence.
“The identified synergies, coupled with the complementary strengths of both businesses, would enhance our competitiveness while enabling us to deliver greater value to our customers and stakeholders,” Afridi said.
The companies said they remain committed to investing in technology, sustainability and future expansion projects. Further updates will be shared as regulatory approvals proceed.
