Engro Holdings has agreed to sell its approximately 56.19% stake in Engro Polymer & Chemicals Limited (EPCL) to Lotte Chemical Pakistan Limited for approximately Rs19.7 billion, subject to regulatory approvals, the company said on Tuesday.

The transaction, under a Share Purchase Agreement (SPA) signed by Engro Corporation, a wholly-owned subsidiary of Engro Holdings, marks another portfolio decision following the conglomerate’s restructuring in 2025.

EPCL has been a core part of Engro Corporation’s portfolio since 1997 and has played an important role in the development of Pakistan’s downstream petrochemicals sector. It is Pakistan’s only integrated chlor-vinyl complex and a key supplier to multiple downstream industries, with products including PVC resin, caustic soda and hydrogen peroxide.

The proposed transaction reflects the continuing evolution of the Engro Group following its restructuring in 2025, which led to the creation of Engro Holdings as the conglomerate’s investment arm. Since then, Engro Holdings has actively executed its mandate through significant decisions, including the $562 million Deodar transaction.

Adnan Afridi, CEO of Lotte Chemical Pakistan, said the combination would create a stronger platform for sustainable growth, operational excellence and innovation.

“The identified synergies, coupled with the complementary strengths of both businesses, would enhance our competitiveness while enabling us to deliver greater value to our customers and stakeholders,” he said.