Poland continues to consolidate its energy sector with the merger of the leading oil group PKN Orlen with the country’s largest gas company, PGNiG, both controlled by the state, effective Wednesday.
The Orlen Group, whose name the new giant will retain, said the merger had just been formally registered with the company registries.
“Today we have built the largest industrial group in Central Europe, among the largest in Europe and 155th in the world in terms of turnover” possible 400 billion zlotys (85 billion euros), congratulated on Twitter the CEO of Orlen, Daniel Obajtek.
Previously, this group, 31.14% of which is owned by the Polish state, had already merged with its main local rival Lotos and the Polish electricity company Energa, as part of a consolidation plan for the energy sector decided before the war in Ukraine.
According to Mr. Obajtek, with these operations, “we are creating the potential to make investments in billions that will strengthen the security and energy independence of Central Europe.
The merger received a conditional green light from the National Competition Office UOKiK, forcing PGNiG to give up control of its Polish gas storage unit.
The merger took place through the acquisition of all assets of PGNiG by PKN Orlen, in exchange for new shares in the latter’s increased share capital.
PKN Orlen is the Polish champion in oil production, transportation, refining, wholesale and retail, as well as in the electricity sector. It is also present in Germany, the Czech Republic, Slovakia, Hungary and Lithuania.
Active in the production, import, storage, distribution and sale of gas, PGNiG – owned 71.88% by the Polish state – was the largest wholesaler and retailer of energy supplies in Poland.
