Merger creates third biggest construction company

Mostostal Zabrze and PIA Piasecki signed a merger agreement yesterday that will create the third largest construction company in Poland. The new group will be known as PIA Mostostal Holding SA, and will have its head office in the Silesian city of Zabrze, and its management office in Warsaw. Mostostal, which currently operates mainly in southern Poland, specializes in industrial construction. Through its subsidiary Przedsiebiorstwo Robot Inzynieryjnych it enjoys a strong position on the road building market. PIA Piasecki is active in Warsaw and central Poland and specializes in the construction of housing and office buildings. Last year, the combined turnover of the two companies totalled zl.1.6 billion, a figure that is expected to rise to zl.2 billion this year. The merger will be based on the acquisition of PIA Piasecki property by Mostostal in exchange for new shares issued to PIA Piasecki shareholders. (Rzeczpospolita, p. B4, Prawo i Gospodarka, p. 9) P.W.