PGE planned EDF takeover a threat to competition – UOKiK

After further analysis, Poland’s antitrust watchdog UOKiK said that the planned takeover of  Polish assets by state-owned power utility PGE could pose a threat to competition and limit electricity sales of the commodity exchange TGE. “Increasing PGE's position may also result in a decline in turnover on the TGE, which might have a negative impact on the sales on the retail market,” UOKiK said in its statement. Despite the objections, UOKiK said that “it’s is convinced that a dialogue will yield in a compromise that will allow for a fast realization of the transaction.” PGE has 14 days to respond to the objections. Back 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. EDF Polska owns four power and heat-generating plants and a coal-fueled power plant, as well as EDF's 50 percent stake in Kogeneracja, which owns another four power and heating plants.