Poland's PKN Orlen gets EC approval for Energa takeover

Warsaw — EC approval was condition for takeover

PKN expanding into power sector

Poland's largest refiner PKN Orlen said late Tuesday the European Commission had approved its takeover of the state-controlled utility Energa.

Obtaining the Commission's approval was one of the conditions for the merger, which was announced in December. At the time, PKN said it planned to buy 100% of Energa in a tender offer of Zloty 7 per Energa share, valuing the company at Zloty 2.9 billion ($693 million).

PKN wants to acquire Energa, which is 51.52% owned by the state, as part of a plan to expand its electricity sales on the Polish market. PKN already supplies electricity to the grid from the 600 MW combined-cycle gas turbine at its Plock refinery, which consumes 0.8 Bcm/year of gas feedstock, and the 463 MW CCGT in Wloclawek.

PKN is now the largest electricity generator in Poland's gas-fired CHP sector, with annual generation of 8 TWh, compared to Energa's 3.6 TWh.

PKN is 27.52% state-owned, while retirement funds Nationale-Nederlanden and Aviva Santander own 7.61% and 5.85% respectively. The remaining shareholders, who own less than 5% stakes, account for 59.02% of the company's shares.

Poland's governing Law and Justice party plans to create national champions and PKN is also planning to acquire its smaller rival, the Gdansk-based refiner Lotos.