The Competition Commission of Pakistan (CCP) has approved the acquisition of BP plc’s global Castrol lubricants business by US-based investment firm Stonepeak Partners, allowing the major international ownership transition to move forward after a Phase-I merger review.

The transaction involves the sale of Castrol Group Holdings Limited, the entity that owns BP’s worldwide Castrol lubricants operations, to Motion JVCo Limited, a special purpose vehicle established by Stonepeak.

Under the agreement, the Canada Pension Plan Investment Board (CPP Investments) will acquire an indirect minority stake in Castrol, while Stonepeak will retain indirect sole control of the business following completion of the deal.

The CCP reviewed the transaction because Castrol products are marketed and sold in Pakistan through Castrol Group Holdings Limited, even though the acquisition itself is part of a global corporate transaction.

During its assessment, the regulator identified Pakistan’s lubricants sector as the relevant market and examined whether the deal could affect competition.

The commission found that neither Stonepeak nor CPP Investments currently has operations in Pakistan’s lubricants market. Therefore, the acquisition would not result in the merger of competing businesses or create any significant horizontal or vertical overlaps with Castrol’s local operations.

The CCP concluded that the transaction would not change the competitive landscape of Pakistan’s lubricants market, raise entry barriers, or strengthen any dominant market position.

The approval was granted under Section 31(1)(d)(i) of the Competition Act, 2010, with the regulator clarifying that its decision only covers competition-related matters and does not replace other required legal or regulatory approvals.