Poland state controlled oil refiners and sole gas distributor may be merged to avoid external takeovers.
The Polish government is considering merging the country’s largest oil and gas companies: PKN ORLEN, Grupa Lotos and PGNiG to prevent hostile takeovers, Treasury Minister Dawid Jackiewicz said earlier this week.
He told reporters in Warsaw the government will complete an initial analysis of the potential consolidation by the end of the first quarter before deciding whether to move forward.
“I have started analytical work on the potential merger of PKN ORLEN, Lotos and PGNiG. I don’t want to divulge what form and configuration the merger will take. It will be subject to further studies,” Jackiewicz said.
PKN ORLEN and Grupa Lotos are Polish oil refiners, while PGNiG is the country’s sole gas distributor. All three are publicly-listed, but controlled by the government.
“We want to secure the interests of the State Treasury against potential hostile takeovers … . We have no plans to delist the companies,” he added.
Market sources believe the merger of the three companies won’t receive approval from the European Union, as it could potentially create a monopoly, Kallanish Energy finds.