WARSAW: Poland’s biggest oil refiner, state-run PKN Orlen, unexpectedly announced that it plans to take over state utility Energa to strengthen its position in the electricity market. PKN said it will offer 7 zlotys per Energa share, valuing the company at 2.9 billion zlotys ($744 million). “We will be selling not only fuels but also electricity, strengthening the group on the whole market,” PKN Orlen Chief Executive Daniel Obajtek told a news conference. He added that PKN has notified the European Commission of the planned deal, which is expected to be completed by mid 2020. Both PKN and Energa have heavy and politically-motivated investment projects in their pipelines. PKN, which has a market capitalisation of 37 billion zlotys, also wants to take over smaller rival Lotos, with a market cap of almost 16 billion zlotys, a move encouraged by some prominent members of the ruling Law and Justice (PiS) party. That deal is still waiting for regulatory approval from the European Commission. — Reuters
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