Mughal Iron & Steel Industries Successfully Concludes Acquisition of Mughal Energy

Mughal Iron & Steel Industries Limited, a leading steel manufacturer in Pakistan, has announced the successful completion of its acquisition of Mughal Energy Limited (MEL), marking a strategic move in the energy sector.

The disclosure was made through a notification to the Pakistan Stock Exchange (PSX) on Thursday, following the members' approval of Mughal Iron & Steel Industries Limited's acquisition of Mughal Energy Limited.

"In continuation of the approval by the members of Mughal Iron & Steel Industries Limited to acquire Mughal Energy Limited, we are pleased to inform you that the acquisition transaction has successfully been completed, and MEL is now the wholly-owned subsidiary of the company w.e.f November 30, 2023,"

stated the notice.

This strategic acquisition is expected to significantly strengthen Mughal Iron & Steel Industries Limited's competitive positioning. The company revealed that MEL had already procured and imported land and a hybrid power plant. Additionally, local contracts for civil work, construction, and installation have been awarded, with the plant expected to be commissioned within 18 months from the construction date.

Mughal Iron & Steel Industries Limited, incorporated in 2010, primarily focuses on the manufacturing and sale of mild steel products in the ferrous segment. The company operates in both ferrous and nonferrous business segments, catering to the domestic housing sector market, large infrastructure projects market, and the international market for copper products, which are exported to the People’s Republic of China.

As part of its expansion efforts, the company has successfully achieved commissioning for its copper expansion project, a development highlighted during its recent analyst briefing session attended by AKD Securities, a reputable brokerage house. This expansion is anticipated to generate sales worth Rs25 billion within the next 14-16 months post COD (Commercial Operation Date).