Poland's Orlen to acquire monopolist PGNiG

Poland's Orlen to acquire monopolist PGNiG

Poland's leading oil and gas company PKN Orlen will likely acquire the country's natural gas monopolist PGNiG in October or November this year, Orlen said on Friday.

PKN Orlen expects to hold its extraordinary general meeting of shareholders in September and PGNiG's in October.

PGNiG shareholders will receive 0.0925 new shares in Orlen per share in PGNiG under a merger plan that will include a 0.0925 new share in Orlen. Orlen will issue 534 million new F-series shares to finalise the deal.

The merger has to be approved by the shareholders of both companies, and there are also other conditions that must be fulfilled in the merger strategy.

The lottery takeover by Orlen was approved by the EGMs of Orlen and its smaller peer Lotos last week.