The Council of Ministers has approved the merger of PGNiG and PKN Orlen. The merger is to ensure that investments of key importance for Poland’s security can be undertaken. The new concern will become the largest company in Central and Eastern Europe, the gov’t spokesperson said after Monday’s sitting.
“The Council of Ministers has approved today the merger of the PGNiG and PKN ORLEN Group,” Deputy Prime Minister Sasin wrote on Twitter.
— Jacek Sasin (@SasinJacek) September 26, 2022
The Chancellery indicated that the merger of the two companies will be part of a consolidation process of companies in the Polish fuel and energy sector including ORLEN, LOTOS and PGNiG. The solution will contribute to the improvement of Poland’s and the region’s energy security, which is particularly important in the current geopolitical situation, it was assessed.
Poland’s leading oil and gas company PKN Orlen and the country’s natural gas monopolists PGNiG have convented their extraordinary general meetings (EGMs) of shareholders to approve the merger, PKN Orlen on September 28 and PGNiG on October 10. What’s more, the EGMs of Orlen and Lotos (also the oil and gas company) approved the Lotos takeover by Orlen last July.
The consolidation of the fuel and energy sector will result in the creation of a strong Polish robust oil and gas group, with ORLEN playing a leading role. The new concern is to become the biggest in Central and Eastern Europe, which may become a major player in global markets.