PGNiG gas giant shareholders approve merger with PKN Orlen fuel firm

The merger was approved by over 99 percent of the voters participating in the EGM. Jakub Kaczmarczyk, Leszek Szymański/PAP

Shareholders of the country's natural gas monopolist PGNiG, at Monday's extraordinary general meeting (EGM), voted in favor of the planned merger with Poland's leading oil and gas company PKN Orlen.

The merger was approved by over 99 percent of the voters participating in the EGM.

PKN Orlen's EGM approved the merger on September 28.

In late July, the two companies agreed on a merger plan under which Orlen would acquire PGNiG through the transfer of all assets and liabilities of PGNiG to Orlen, in exchange for Orlen's new shares that will be issued to the shareholders of PGNiG. PGNiG shareholders will receive 0.0925 Orlen's new shares per one PGNiG share.

In March, the Polish regulator okayed the merger of the two companies under the condition that PKN Orlen would get rid of control over Gas Storage Poland, an operator of the natural gas storage system and a PGNiG subsidiary. PKN Orlen and PGNiG have been given 12 months from the merger to fulfil the condition.

On September 26, the Polish government greenlighted the merger, which it said, would improve the energy security of Poland and the region, particularly in the current geopolitical situation.

In 2020, PKN Orlen took over Energa, an energy utility operating in northern Poland, and in August it finalised takeover of its major competitor LOTOS. According to Orlen's CEO, Daniel Obajtek, the goal is to build a multi-energy company that can become a strong competitor on the European market.