Polish oil and gas firms to merge in autumn

PKN Orlen expects its extraordinary general meeting (EGM) of shareholders to take place in September and PGNiG's in October. Mateusz Marek/PAP

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 its extraordinary general meeting (EGM) of shareholders to take place in September and PGNiG's in October.

The two companies have agreed to a merger plan under which PGNiG shareholders will receive 0.0925 new shares in Orlen per one share in PGNiG. Orlen will issue 534 million new F-series shares to finalise the deal.

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

Last week, the EGMs of Orlen and its smaller peer Lotos approved the Lotos takeover by Orlen.

According to the government, whose stakes in the three companies ensure it decision rights, the mergers will turn PKN Orlen into a robust oil and gas group, the biggest in Central Europe, that may become a major player on global markets.