A court registered the merger of PKN ORLEN S.A. with Polish Oil and Gas Company on Wednesday. S.A. (PGNiG). The merger of the companies was announced on Twitter by PKN ORLEN CEO Daniel Obajtek.

The merger was carried out by transferring all the assets of PGNiG S.A., including all rights and obligations (assets and liabilities), to PKN Orlen S.A. with a simultaneous increase in the share capital of the acquiring company through the issue of merger shares to the shareholders of PGNiG S.A.

“We are thus finalising the acquisition processes, thanks to which we are entering the ranks of the 150 largest companies in the world. We have created the potential for multi-billion dollar investments strengthening the security and independence of energy in Central Europe”, wrote Obajtek.

PKN Orlen is planning to complete the merger of its subsidiaries PKN Orlen, Lotos and the Polish Oil and Gas Company (PGNiG) in the next 10-12 months.

The head of the conglomerate stressed that the first step would be to merge the exploration and production part in Poland, based on a separate company SPV 7, as well as to merge the Norwegian upstream companies PGNiG and Lotos Group. In this case, the acquiring company will be PGNiG Upstream Norway.

As Orlen points out, the creation of a single multi-utility company means combining the retail operations of all the merging companies and the possibility to prepare a comprehensive product offer for millions of households in Poland, including the supply of all energy carriers at competitive prices. The most important objective is to increase the volume and quality and efficiency in the sales segment, as well as to optimise customer service costs.

As a result of the merger between PKN Orlen and PGNiG, and previously also Lotos Group, the State Treasury’s stake in the merged concern will increase to almost 50 %.

Arkadiusz Słomczyński