Ministry of Energy considering options for PGE takeover of EDF assets

WSE-listed, state-owned power utility PGE is considering possibilities on how to be able to takeover the Polish assets of EDF, after antimonopoly watchdog UOKiK said that it has some “major reservations.” “There are some problems because the purchase will result in an excessive concentration of PGE and compensating steps are being considered,” deputy energy minister Andrzej Piotrowski said. Piotrowski singled out EDF’s power plant in Rybnik, which with its 1,775 MW capacity is crucial to the country’s energy security. According to UOKiK’s President Marek Niechiał, the transaction could still go through but under certain conditions, such as a sale of the portion of EDF assets to another entity. Bank in May, PGE agreed to buy Polish assets of French EDF for PLN 4.5 billion. The value of the transaction includes PLN 2.45 billion in equity value and PLN 2.06 billion in debt and is expected to be finalized the deal by January 2, 2018.