The Polish Treasury Minister, David Jackiewicz has said that his ministry is considering merging PKN Orlen, Lotos and PGNiG in an attempt to prevent hostile takeovers of the companies. 

PGNiG is Poland’s only gas distributor with PKN Orlen and Lotos, both oil refiners. The government has a 53 percent stake in Lotos, 72 percent in PGNiG and 27 percent in Orlen.

On Monday, Jackiewicz said, “I have started analytical work on the potential merger of PKN Orlen, Lotos and PGNiG. I do not want to divulge what form and configuration the merger will take.”

The three companies, which are listed on Warsaw’s primary stock exchange, The WIG20 all saw their share price fall following his announcement.

Poland media reports that the European Commission could block the move if it went through as it would lead to the creation of a large state monopoly. There will be some initial analysis carried out on a potential consolidation, with a formal decision expected some time in March.