The main Hungarian and Polish energy companies have taken the first step toward what would be Central and Eastern Europe's largest merger
Published:
22 November 2003 y., Saturday
The main Hungarian and Polish energy companies have taken the first step toward what would be Central and Eastern Europe's largest merger. The Hungarian Oil and Gas Company, MOL (Magyar Olay es Gazipari), says it has signed a memorandum of understanding with Poland's oil and gas giant PKN (Polski Koncern Naftowy Orlen).
In a statement, MOL says the two companies believe the move toward a merger will enable them to compete more effectively with major global energy companies.
Budapest-based analyst Tamas Kiss of the Platts company, the world's largest information provider on energy, says the firms have been concerned about a possible hostile takeover by a foreign company.
"This is the biggest merger in Central and Eastern Europe," he said. " And to have competition against the big players like Shell and other multi-nationals in the region here, MOL has definitely got to have this merger. And MOL in itself is worth about $3 billion. PKN in itself is quite a big company. The company is worth about $5 billion. So, together, being almost $8 billion, it would be a significant, big company."
Hungarian Prime Minister Peter Medgyessy and his Polish counterpart Leszek Miller, who both attended the signing ceremony in Warsaw, say they, too, want a strong regional energy company.
The Polish government has a 28 percent stake in PKN, while Hungary holds 23 percent in MOL through its privatization agency.
But analyst Tamas Kiss says the governments of Hungary and Poland will soon lose what is called their golden shares in the companies - the power to veto decisions - when the countries join the European Union in May of next year.
Šaltinis:
voanews.com
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
Mr. Olli Rehn, European Union Commissioner, and Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), issued the following joint statement on Greece.
more »
The offering of shares of the new issue will commence on 03-05-2010.
more »
The World Bank today approved a $12 million IDA credit to Bhutan, designed to improve infrastructure services in parts of the capital city of Thimphu where no formal services are currently available.
more »
Fisheries ministers and stakeholders alike will be discussing the future shape of the EU's Common Fisheries Policy at two major events in Spain over the next days. On 2 and 3 May, in La Coruña, the Commission and the Spanish Presidency are organising a large stakeholder conference on the reform of the Common Fisheries Policy.
more »
Asia is leading the global recovery and the region’s contribution to global growth will continue to exceed that of other regions in the next two years, the International Monetary Fund (IMF) said today in its latest Regional Economic Outlook (REO) for Asia and the Pacific.
more »
The EBRD is supporting the modernization of the electricity distribution network and the development of renewable energy sources in Poland with a PLN 800 million loan (equivalent to approximately €205 million) to the Energa energy group in order to help the company strengthen its power grid.
more »
At the beginning of the summer this year, Vilnius will become the capital of the Baltic Sea region. On 1-2 June 2010, the city will host the Baltic Sea States Summit and the Baltic Development Forum (BDF) Summit.
more »
Visitors of the World Expo 2010, which will open in the Chinese city of Shanghai on May 1st under the slogan “Better City, Better Life” and will last for 184 days until the end of October, are kindly invited to get into a hot air balloon at the Lithuanian Pavilion.
more »
According to preliminary data, unaudited net loss sustained over the first quarter of the year 2010 by SEB Bank is LTL 59,4 million (EUR 17,2 million) and that by SEB Bank Group is LTL 80,3 million (EUR 23,3 million).
more »
European Globalisation Adjustment fund (EGF) aid must be delivered faster and more simply to unemployed workers hit by the financial crisis or globalisation, concluded the Budgets and Employment committees after evaluating the fund on Wednesday.
more »