Lotte Chemical To Buy Engro Polymer In Rs. 19.7 Billion Deal

Engro Corporation Limited has entered into a share purchase agreement with Lotte Chemical Pakistan Limited to sell its entire shareholding in Engro Polymer & Chemicals Limited, representing approximately 56.19 percent of the company’s issued and paid-up ordinary share capital.

Engro Holdings Limited, the parent company of Engro Corp, disclosed the development to the Pakistan Stock Exchange on Tuesday. The aggregate transaction value is Rs. 19.7 billion, with the shares priced at Rs. 38.6 each.

Engro Corp is a wholly owned subsidiary of Engro Holdings. Under the agreement, it will transfer its entire stake in Engro Polymer to Lotte Chemical Pakistan, which is the acquirer in the transaction.

Engro Holdings said the transaction is subject to regulatory approvals and other customary conditions.

Engro said in a press release that the transaction reflects the group’s portfolio strategy following its restructuring in 2025, which resulted in the creation of Engro Holdings as the conglomerate’s investment arm.

Since then, the company has made significant investment decisions, including the $562 million Deodar transaction, described by the group as one of Pakistan’s largest private sector deals in more than a decade.

The company said the proposed sale would allow it to recycle capital into future growth opportunities and strengthen the quality and resilience of its portfolio.

Engro Holdings CEO Abdul Samad Dawood said Engro Polymer has been one of the group’s flagship businesses for nearly three decades. He said Engro had worked with leading international companies to build capabilities, strengthen operations and contribute to Pakistan’s industrial development.

Dawood said the proposed transaction would allow Engro to realize the value and learnings created through its journey with Engro Polymer while unlocking synergies for the company within a larger petrochemicals platform. He added that the transaction would strengthen Engro’s ability to pursue new investment opportunities and build a resilient portfolio focused on long term shareholder value.

Lotte Chemical Pakistan CEO Adnan Afridi said the proposed combination would create a stronger platform for sustainable growth, operational excellence and innovation. He said identified synergies and the complementary strengths of the two businesses would improve competitiveness and create greater value for customers and stakeholders.

The agreement follows Lotte Chemical Pakistan’s March 2026 announcement of its intention to acquire control of Engro Polymer. At the time, Lotte Chemical had proposed acquiring approximately 56.19 percent of Engro Polymer from Engro Corp through a share purchase agreement, alongside a potential public offer for an additional 17.5 percent of the company.

The transaction also comes after a series of changes in Engro Polymer’s shareholder base this year. In February, Mitsubishi Corporation agreed to sell its 11.007 percent stake in the company, with the Competition Commission of Pakistan subsequently approving the acquisition of that shareholding by Liberty Daharki Power Limited.

Engro Polymer & Chemicals was incorporated in Pakistan in 1997 and has grown into the country’s only fully integrated producer of PVC resin and caustic soda. The company manufactures and sells PVC, vinyl chloride monomer, caustic soda and other related chemicals, with its integrated chlor vinyl complex supporting a range of industrial customers.

Engro Polymer has been a core part of Engro Corporation’s portfolio since 1997 and has played a role in developing Pakistan’s downstream petrochemicals sector. The company has expanded its operations over the years and has become Pakistan’s only integrated chlor vinyl complex and a key supplier to downstream industries, with products including PVC resin, caustic soda and hydrogen peroxide. Engro Polymer is currently a subsidiary of Engro Corporation, which holds approximately 56.19 percent of its shares.

Lotte Chemical Pakistan has been operating in the country’s chemical industry for decades and is principally engaged in the manufacture and sale of purified terephthalic acid which is used by the textile, polyester and packaging industries. The company was incorporated in Pakistan in 1998 and operates a plant at Port Qasim in Karachi.

Engro Holdings said it will keep the Pakistan Stock Exchange informed of any further material developments related to the transaction.

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