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.

Key points

• The agreement follows Lotte Chemical Pakistan's March 2026 announcement of its intention to acquire control of Engro Polymer.
• Engro Holdings Limited, the parent firm of Engro Corp, disclosed the development to the Pakistan Stock Exchange on Tuesday.
• 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 firm was incorporated in Pakistan in 1998 and operates a plant at Port Qasim in Karachi.
• 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.

Engro Holdings Limited, the parent firm 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. It is the acquirer in the transaction. FBR Orders Officers to Reveal Foreign Citizenships, Passports and Marriages.

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

Engro remarked in a press release that the transaction reflects the group's portfolio strategy after its restructuring in 2025. It resulted in the creation of Engro Holdings as the conglomerate's investment arm.

Since then, the firm has produced 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.

Meanwhile, the firm stated the proposed sale would allow it to recycle capital into future expansion opportunities and strengthen the quality and resilience of its portfolio.

Engro Holdings CEO Abdul Samad Dawood remarked Engro Polymer has been one of the group's flagship businesses for almost three decades. He remarked Engro had worked with leading international businesses to build capabilities, strengthen operations and contribute to Pakistan's industrial development. Ahsan Iqbal Sees 'Created in Pakistan' Becoming Next Global Brand.

Dawood remarked the proposed transaction would allow Engro to realize the value and learnings created through its journey with Engro Polymer while unlocking synergies for the business within a larger petrochemicals platform. He continued 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 remarked the proposed combination would create a stronger platform for sustainable expansion, operational excellence and innovation. He remarked identified synergies and the complementary strengths of the two businesses would improve competitiveness and create greater value for customers and stakeholders.

In practice, 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 extra 17.5 percent of the business.

Meanwhile, the transaction additionally 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 firm, 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 firm 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 firm 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 at present a subsidiary of Engro Corporation. It 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 applied by the textile, polyester and packaging industries. The firm was incorporated in Pakistan in 1998 and operates a plant at Port Qasim in Karachi.

Engro Holdings remarked it will keep the Pakistan Stock Exchange informed of any further material developments related to the transaction. Stay Connected with ProPakistani.

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For now, lotte Chemical To Buy Engro Polymer In Rs. 19.7 Billion Deal remains the part of the story worth watching, and further updates are likely as more details are confirmed.