PGE Polska Grupa Energetyczna Zl4.51 billion acquisition of EDF's Poland assets

Overview:

• PGE Polska Grupa Energetyczna (PGE) has acquired EDF's Polish energy assets for Zl4.51 billion.
• The deal includes eight combined heat and power (CHP) power plants in Gdynia, Gdańsk, Kraków, Wrocław (CHP Wrocław and CHP Zawidawie), Toruń, Zielona Góra and Siechnice; a 1.8GW coal power plant in Rybnik and 400km of transmission cable.
• The deal will increase PGE's share of Poland's electricity generational capacity from 36% to 45% and increase the company's heat generation capacity by over 150%.
• PGE is a Polish state owned energy company, the country's largest, and is listed on the Warsaw Stock Exchange.
• An alternative deal to sell the assets to Australia's IFM investors and Czech EPH was blocked in 2016 by the Polish Energy minister, according to Reuters, due to concerns about energy security.
• The deal is the second example this year of a Polish energy company buying foreign owned assets after Enea's acquisition of ENGIE Energia Polska, the owner of the Połaniec power plant.

Sam Duke - Editor