Government extends protection of strategic companies against hostile takeover

The Council of Ministers adopted a regulation on the list of protected entities and the relevant oversight authorities as proposed by the Minister of State Assets. The protection of companies that require special consideration from the point of view of the order and security of Poland will be extended until the end of 2024.

The regulation extends until December 31, 2024 the protection for entities that require special protection from the point of view of public security. The current protection rules expire on 31 December 2023.

The list includes Baltchem, Telesystem-Mesko development and implementation Centre, Emitel, Gaspol, Grupa Azoty, HAWE TELEKOM in restructuring, KGHM Polska Miedź SA, Oktan Energy & V / L Service, Orange Polska, PKP Energy, Polkomtel, Polski Koncern Naftowy Orlen, Rafineria Gdańska, Stoen Operator, Tauron Polska Energia, TK Telekom and Unimot.

These chemical, fuel, energy, telecommunications, and defense companies provide goods or manage infrastructure critical for the country’s security and are under the government’s oversight under the Oversight of Certain Investments Act. “Not extending the regulation would mean the lack of protection of strategic companies for the state and the risk of their takeover by entities undesirable from the point of view of Polish interests,” explains the Prime Minister’s Office. Such a risk emerged when Russia’s Akron tried to conduct a hostile takeover of Grupa Azoty. This occurence prompted lawmakers in Poland to introduce the Act.

“The regulation is an implementing act to the Act on the Oversight of Certain Investments. The Act defines the rules and procedures for the oversight of certain investments consisting in the purchase of shares or stocks, rights, etc., resulting in the acquisition or achievement of a significant participation or dominance over a company that is a protected entity,” explains the Polish Press Agency. “An entity which intends to acquire or achieve a significant shareholding or to acquire a dominant interest shall be required to notify the oversight authority of its intention at all times. The competent authority must give its consent to the transaction. Among the entities on the list, the oversight authority for Telesystem-Mesko is the Ministry of National Defence, and in the case of other companies on the list – the Ministry of State Assets,” the Agency said.

Prime Minister’s Office / Polish Press Agency / Wojciech Jakóbik