WARSAW (Dow Jones)--The Polish government has picked state-controlled power utility PGE Polska Grupa Energetyczna SA (PGE.WA) for exclusive talks on the takeover of smaller peer Energa, a person familiar with the situation said Wednesday.
PGE has competed with Czech Energeticky a Prumyslovy Holding for Energa, now wholly owned by the Treasury.
According to earlier reports, the Polish Treasury Ministry is expected to announce its decision this week. PGE earlier said it was expected to be picked for exclusive talks by Sept. 15.
PGE's offer values 100% of Energa shares at around 9 billion zlotys ($2.97 billion), with PGE possibly buying a slightly higher stake in the business than 82.9% originally offered, the person said.
After the takeover, Energa won't merge with PGE and will continue to be based in Gdansk, northern Poland, the person said.
Polish Prime Minister Donald Tusk Tuesday backed PGE's takeover bid for Energa, saying the transaction would facilitate the implementation of the country's strategy on nuclear power.
PGE has been charged with spearheading the development of nuclear power in Poland, together with international partners. Acquiring Energa would boost PGE's portfolio of retail customers, which would make it easier for the firm to get bank financing for nuclear projects, according to earlier reports.
But the head of Polish antitrust office UOKiK, Malgorzata Krasnodebska Tomkiel, has repeatedly said she opposes the acquisition of Energa by PGE.
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