Polish Security Warned of Tarnow Sale to Russia’s Akron – Paper

Poland’s Internal Security Agency warned the government in May of a potential energy security threat, if a deal by Russia’s mineral fertilizer producer Akron to acquire Polish chemical plant Azoty Tarnow went through, Rzeczpospolita national daily reported on Tuesday.

In a note made available to the newspaper, the Polish Internal Security Agency said Tarnow accounted for about 10 percent of domestic demand for natural gas, almost entirely imported from Russia. By buying up the largest consumers of Russian natural gas in Poland, Akron was attempting to foil the planned transition of the Polish economy to domestic shale gas production, the Agency argued.

“We plan to produce shale gas already in two years’ time, due to which cheap gas of our own production will appear on our market. The Russians may buy up our largest gas consumers before this happens,” the note said.

Akron sent an offer to Tarnow in mid-May to buy up to 66 percent of its shares at a price well above market rates. In an attempt to prevent the deal, Poland’s Treasury, the holder of 32.1 percent of shares in Azoty Tarnow and 50.7 percent of shares in Zaklady Azotowe Pulawy, another domestic chemical enterprise, initiated a merger of the two Polish businesses.

On Saturday, Tarnow shareholders made a decision on a new share issue to consolidate the business with Pulawy.


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