Poland's Treasury Ministry considers a potential merger of (54 PLN, -1,18%) (54 PLN, -1,18%) and Grupa (47 PLN, -0,85%), but no decision has been made yet, Treasury Minister Wojciech Jasinski told reporters yesterday. Earlier this year, CEO Mr. Piotr Kownacki said a merger of the two companies would be favorable because it would provide better protection from hostile takeovers and improve the country’s energy security.
Our view: In our view Treasury Ministry’s consideration of the merger is not very new for the market. In the current political environment in Poland, however, we do not expect any major step forward. We see the news as neutral for the share price of both companies.