Lotte Chemical Pakistan Limited (LOTCHEM) has moved closer to acquiring Engro Holdings’ majority stake in Engro Polymer & Chemicals Limited (EPCL). Engro Corporation Limited, a subsidiary of Engro Holdings (PSX: ENGROH), has received a non-binding offer from LOTCHEM for the acquisition of approximately 56.19% of EPCL’s paid-up share capital.
The proposed transaction follows a Public Announcement of Intention issued on March 10, 2026. The stake represents Engro Corp’s entire shareholding in EPCL, one of Pakistan’s leading producers of polyvinyl chloride (PVC) and related chemical products.
Board Review and Authorization
According to a notice submitted to the Pakistan Stock Exchange (PSX) on Friday, the Board of Directors of Engro Corp reviewed the offer during a meeting held on March 12, 2026. The board authorized management to:
- Negotiate and finalize the terms and conditions of the potential transaction
- Prepare the relevant transaction documentation
- Present the final agreement to the board for approval once negotiations conclude
Transaction Status
The company emphasized that the offer remains non-binding at this stage. Further updates will be shared with shareholders as developments occur. Engro Holdings has committed to keeping shareholders informed through subsequent disclosures as the process progresses.
Strategic Significance
If completed, the deal would mark a significant ownership shift in EPCL, a key player in Pakistan’s petrochemical sector. The transaction would:
- Transfer control of EPCL from Engro to LOTCHEM
- Expand LOTCHEM’s footprint in Pakistan’s chemical industry
- Consolidate LOTCHEM’s position in the PVC and related products market
- Represent a major portfolio realignment for Engro Holdings
About the Companies
Engro Holdings Limited (PSX: ENGROH) is one of Pakistan’s largest conglomerates, with diversified investments in fertilizers, foods, energy, chemicals, mining, and logistics. Engro Polymer & Chemicals Limited (EPCL) is a leading manufacturer of PVC and other chemical products.
Lotte Chemical Pakistan Limited is a prominent player in Pakistan’s petrochemical sector, involved in the production and marketing of chemical products. The proposed acquisition would significantly expand its manufacturing and market presence.
