PGE secures conditional UOKiK approval for EDF purchase

The anti-trust watchdog UOKiK, granted the conditional approval to WSE-listed power group PGE for the takeover of the Polish assets of EDF. In return, PGE will have to sell all power from the Rybnik power plant (roughly 25 percent of all the generated power) on the power exchange TGE until 2021. “Execution of the condition will result in the concentration having no adverse effect on competition. The increase in market power of PGE will be limited. Practically all the electrical power produced so far by EDF Polska, which has been sold to wholesale customers, will be offered on the stock exchange. None of the entrepreneurs interested in purchasing this energy will be discriminated against,” said UOKiK President, Marek Niechciał. 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. After the transaction it’s power generation capacity would rise to 45 percent from the current 36 percent.