Kot Addu Power Company Limited (KAPCO) and Fauji Cement Company Limited (FCCL) have taken a major step toward reshaping Pakistan’s cement industry by signing a share purchase agreement (SPA) to jointly acquire 84.06% stake in Attock Cement Pakistan Limited (ACPL), according to notices filed with the Pakistan Stock Exchange (PSX) on Friday.
Under the terms of the SPA executed on January 30, 2026, both KAPCO and Fauji Cement will purchase majority shareholdings from Pharaon Investment Group Limited Holding S.A.L, a Lebanon-based investment firm currently holding a controlling stake in ACPL. Each acquirer will acquire 42.03% of ACPL’s issued and paid-up share capital, bringing their combined ownership to 115,526,349 shares or 84.06% of the company’s total equity.
The deal marks a significant consolidation in Pakistan’s cement sector, uniting an energy sector player and a leading cement manufacturer under a common strategic direction. Fauji Cement, headquartered in Rawalpindi and operating under the umbrella of the Fauji Foundation, is already one of the country’s largest cement producers with an annual production capacity exceeding 11,000 tonnes per day. Its growth in recent years has come from capacity expansion and mergers, including the integration of Askari Cement Limited in 2021.
Kot Addu Power Company, a major power generation utility with significant presence in Pakistan’s energy infrastructure, brings additional industrial strength to the transaction. The joint acquisition aims to combine FCCL’s cement production expertise with KAPCO’s broader industrial reach to enhance operational synergies and competitively position ACPL in local and export markets.
Despite signing the SPA, the transaction remains subject to regulatory and corporate approvals before it can be completed. These include:
Issuance of a public offer under the Securities Act, 2015 and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017
Approvals from the Securities and Exchange Commission of Pakistan (SECP)
Clearance from the Competition Commission of Pakistan (CCP)
Shareholder consent and satisfaction of other closing formalities.
The acquisition follows an earlier public announcement of intention made on June 3, 2025, through Integrated Equities Limited acting as manager to the offer. At that time, FCCL and KAPCO jointly declared their plan to gain control over ACPL, highlighting the strategic importance of this merger for both companies.
Industry analysts say that if completed, the acquisition will create one of the largest cement and building materials players in Pakistan, leveraging both FCCL’s production scale and KAPCO’s industrial network. It also reflects ongoing consolidation trends in Pakistan’s cement sector, as companies seek scale, efficiency, and competitiveness in local and export markets.
With infrastructure and construction activity expected to remain a key driver of economic growth, the enlarged ACPL entity may capture greater market share and contribute to broader industrial development.
