Government sending mixed signals regarding repolonization

Cabinet minister Henryk Kowalczyk said in an interview with TV Republika that the treasury should increase its stakes in PKN Orlen and Grupa Azoty, while suggesting that Orlen and Lotos should merge. The energy ministry later said that no such plans are currently being developed. “The level of holdings is safe at PKN Orlen when the remaining shareholders are dispersed, but if the remaining stakes were more concentrated, then that level would not be safe,” Kowalczyk said. “We need to work on that as the 27 percent stake is not high. We need to increase it,” he added, explaining that a potential way to increase state shares in Orlen would be to merge it with another state controlled fuel giant Lotos. Kowalczyk also added that the government should also increase its stake in Grupa Azoty (currently at 33 percent) as the company is “under threat of hostile takeovers.” Later on, the energy ministry issued a statement that no works related to a potential consolidation of Lotos and Orlen are being done.