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ORLEN-PGNiG nears merger finalisation as shareholders give green light

The shareholders of the Polish natural gas distributor, PGNiG almost unanimously agreed on the merger with the Polish oil refiner and petrol retailer, PKN ORLEN at this week’s Extraordinary General Meeting. Over 99 per cent of PGNiG shareholders gave the green light to the merger with PKN ORLEN, completing one of the last steps in the merger of the two companies.

“We join forces at an extremely difficult time for the global fuel and energy markets. The economic conditions in which we operate, rapid fluctuations in the raw material markets and challenges related to the energy transformation require us to be consistent and bold decisions, as well as carefully prioritising and take advantage of opportunities for further development of PGNiG’s potential and competences in key areas for the company. Therefore, I welcome the decision made by the shareholders of PGNiG,” said Iwona Waksmundzka-Olejniczak, President of the Management Board of PGNiG SA.

According to the press release, the merger will significantly strengthen the Polish gas, fuel and energy market, increase investment opportunities and implement a number of operational synergies. In addition, it will improve the negotiating position of the merged business concern – both in the case of purchasing raw materials and strengthening its position in the international fuels and energy trading market.

Additionally, the consolidation of the companies is expected to give an impulse to the development of the merged group, strengthening the energy security of the country and, as a result, the Polish economy. By combining the experience and capital of both entities, the offer of comprehensive services for multi-company clients, both business and individual, will be significantly expanded.

Employees of the PGNiG Group, with their experience and knowledge, will support the development of competence centres, including the areas of hydrocarbon exploration and production, gas distribution and storage, as well as heat and electricity generation.

The merger will also develop PGNiG’s upstream operations, creating a new chapter in the rich history of exploration and production, both at home and abroad. The integration of this area within the new business concern will enable an increase in production, facilitate the acquisition of prospective deposits and will be an opportunity for the development of service companies in the Group. Moreover, all hydrocarbon exploration, appraisal and production licenses will remain with the combined entity.

PGNiG’s competencies in the area of ​​gas distribution and storage are of great importance. The PGNiG Group has the largest distribution network in Europe, measuring over 190,000 kilometres. It is also the only entity in the country with an underground storage infrastructure for natural gas. Such special resources not only allow the development of the natural gas market in Poland but also enable the implementation of hydrogen and biomethane projects.

An important contribution of PGNiG to the growth and diversification of the new entity’s operations will be the company’s strong position in the production of electricity and heat. PGNiG has extensive experience in the operation of generating units and the distribution of system heat. This experience will be valuable for strengthening the position of a multi-energy concern in the heating sector.

The merger process is carried out in cooperation and in agreement with the social side, and the employees of PGNiG and the PGNiG Group are informed about the course of the merger process at every stage.

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