PKN Orlen, a Polish oil refiner and retailer, has announced plans to seek EU approval for its planned acquisition of local gas company PGNiG this year.
The move comes more than a month after PKN Orlen signed a letter of intent with the state treasury for the acquisition of PGNiG Group.
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PKN Orlen, one of the largest firms in Central and Eastern Europe, has ramped up efforts in recent years to further consolidate its position with the acquisition of smaller rivals.
The plan is also aligned with the Polish government’s intention to create bigger national players, according to Reuters.
It received conditional approval from the European Commission for the takeover of Lotos, another oil company based in Poland. It has also acquired electric power distribution company Energa.
On plans to secure the European Commission’s approval for the PGNiG deal, PKN Orlen CEO Daniel Obajtek told Reuters: “We are moving very fast, we will prepare a concentration notification and it will be submitted by the end of the year.”
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By GlobalDataObajtek aims to conclude Lotos and PGNiG acquisition in another 18 months.
It is estimated that the combined business, following the integration of PKN Orlen, Energa Group, Lotos and PGNiG assets, will have a total annual revenue of around PLN 200bn ($26.79bn).
Last month, when the letter of intent between PKN Orlen and the state treasury was signed, Poland Prime Minister Mateusz Morawiecki commented: “The acquisitions will have paved the way for PKN Orlen to become the key entity behind the process, which requires significant capital strength. Such mergers open up opportunities to generate additional income and cost synergies.
“It will be a breakthrough process, set to enhance the operational efficiency of both PGNiG and PKN Orlen. Overall integration of certain markets, spanning distribution, sales and trading, points to further directions of growth.”
