Polish oil refiner and retailer PKN Orlen (27.5% owned by the State of Poland) aims at taking over the Polish power group Energa to strengthen its positions in the electricity market and to close the PLN2.9bn (€677m) acquisition by mid-2020. PKN Orlen will offer PLN 7 (€1.63) per share, valuing Energa at PLN 2.9bn (€676m).
PKN Orlen is Poland largest wholesale supplier of oil products (57% market share in 2018). It operates a large refinery in Płock with a capacity of 16.3 Mt/year, which processed and sold around 15 Mt of oil products in Poland in 2018. Energa (51.5% owned by the State of Poland) is active in power generation, distribution and sales activities. In 2018, it operates around 1.3 GW, generated 4.3 TWh, distributed 22 TWh to 3 million electricity and heat customers and sold 20 TWh of electricity. In consortium with ENEA, the company is currently developing the 1,000 MW Ostrołęka-C ultra-supercritical (USC) coal-fired power project that is planned to be commissioned in the second half of 2023. The previous government planned to merge Energa with state-owned power producer PGE but the proposed merger has been postponed until the restructuring of the coal sector.
In August 2019, the European Commission opened an in-depth investigation into the proposed acquisition of the Polish integrated oil and gas company Lotos by its rival PKN Orlen, considering that the merger may reduce competition in fuels supply in Poland and in neighbouring countries. It will take a decision on the transaction by 13 December 2019.
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