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EU Commission gives electric venture go-ahead in Poland

 |  July 24, 2012

A merger between Polish companies Tauron Wytwarzanie, electricity producer, and KGHM Polska Miedz, copper producer, received a stamp of approval from the European Commission. The venture will create a new 850 MW gas-fired power plant in Poland, and EU investigations confirmed that the market share of the new plant would be “limited” and that there are sufficient competing electrical entities to avoid anticompetitive concerns. The Commission also investigated possible vertical merger concerns “as electricity is an input for KGHM’s copper business,” but since KGHM is a global entity with global competitors and Tauron is a local enterprise, no real competition concerns exist. KGHM’s need for electricity in Poland is also minimal compared to Tauron’s output.

Full content: EC


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