Poland clears PKN Orlen’s takeover of PGNiG

Poland clears PKN Orlen’s takeover of PGNiG

Warsaw, 16 March (Argus) — Poland's competition authority has conditionally cleared integrated oil firm PKN Orlen's planned takeover of gas supplier PGNiG, putting the country a step closer to having a single state-controlled energy firm under the PKN umbrella.

To finalise the takeover, PKN has been told it must sell PGNiG subsidiary Gas Storage Poland, which manages the company's gas storage facilities. This will ensure independent management of gas storage, even though the storage facilities themselves will be owned by the enlarged PKN. The firm has 12 months to fulfil the conditions, although it said this week that it plans to complete the takeover process by the end of 2022.

The PGNiG deal is part of wider plans by the Polish government to create a single state-controlled oil and gas company. PKN is also in the process of buying fellow domestic integrated firm Grupa Lotos. In order for that deal to win EU approval, PKN announced in January a package of Lotos asset sales, the pick of which is to sell Saudi Aramco a 30pc stake in Lotos' 210,000 b/d Gdansk refinery.

Earlier this week PKN defended the planned mergers, saying that creating a single oil and gas company will improve Poland's energy