Poland’s leading fuel company PKN Orlen will likely acquire the country’s leading natural gas provider PGNiG in October or November this year, Orlen announced in a press release on Friday.
“The finalisation of the process will enable the construction of a strong multi energy company, based on the assets of PKN ORLEN, LOTOS Group and PGNiG, making investments that will increase Poland’s energy security and raw material independence,” the company stated.
Poland's leading oil and gas company PKN Orlen will likely acquire the country's natural gas monopolist PGNiG in October or November this year, Orlen said on Friday.
— Polish Press Agency (@PAP_eng) July 29, 2022
PKN Orlen expects its extraordinary general meeting (EGM) of shareholders to take place in September and PGNiG’s in October.
The two companies have agreed to a merger plan under which PGNiG shareholders will receive 0.0925 new shares in Orlen per one share in PGNiG. Orlen will issue 534 million new F-series shares to finalise the deal.
The merger has to be approved by general meetings of shareholders of both companies, and there are also other conditions specified in the merger strategy that have to be fulfilled.
All part of the plan
Last week the takeover of Lotos, another oil company, by Orlen was approved by the EGMs of both companies.
According to the government, whose stakes in the three companies ensure it decision rights, the mergers will turn PKN Orlen into a robust oil and gas group, the biggest in Central Europe, that may become a major player in global markets.