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Poland to merge big-three gas and oil companies?

PR dla Zagranicy
Roberto Galea 12.01.2016 14:44
Poland has announced it may merge Orlen, Lotos and PGNiG, the biggest oil and gas companies owned by the Treasury, in an attempt to discourage hostile takeovers.
Photo: Flickr.com/Rafal ZychPhoto: Flickr.com/Rafal Zych

On Monday, Treasury Minister Dawid Jackiewicz told the PAP news agency that his ministry was considering merging the companies.

Orlen and Lotos are oil refiners, while PGNiG is the country's sole gas distributor.

“I have started analytical work on the potential merger of PKN Orlen, Lotos and PGNiG. I do not want to divulge what form and configuration the merger will take. It will be subject of further study,” the minister said.

The analysis of the merger’s possible effects is to be ready by the end of this quarter, Jackiewicz added.

The three companies, which are listed on the Warsaw Stock Exchange, saw their shares fall following the news.

Experts quoted by the Rzeczpospolita daily argue that the only possibility that will bring positive effects is a merger of Orlen and Lotos.

Meanwhile, the Gazeta Wyborcza daily said that the European Commission could block the potential merger of the three to prevent the creation of a monopoly. (ał/rg)

tags: lotos, Orlen, PGNiG
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