ONDE moves to acquire power engineering company

The listed company plans to acquire shares in Olmex SA, which has operated in the extra-high-voltage segment for 26 years. The proposed investment is aligned with the ONDE Group’s long-

term expansion in the electricity transmission market, whose potential is estimated at more than PLN 200 billion.

ONDE, a listed company and one of the leaders of Poland’s renewable energy industry, has taken another step towards diversifying its business. The company has agreed the terms of an acquisition of shares in Olmex SA, a company specialising in the construction and modernisation of electrical and traction substations, as well as medium- and high-voltage power lines. Olmex’s largest customers include power grid operators, distribution companies, conventional and wind power plants, combined heat and power plants, mines, refineries, food-processing companies and heavy industrial plants. Olmex also represents substation equipment manufacturers on the Polish market, including industry giant GE Vernova, which was spun off from General Electric.

The planned investment is aligned with the ONDE Group’s strategy of creating value by expanding its capabilities in the power engineering market and extending its geographical reach.

– The potential acquisition marks another stage in the consistent implementation of our long-term growth strategy. Olmex has unique capabilities in a market with exceptional prospects and growth potential, driven by the need to integrate a growing number of renewable energy sources and new generation capacity, including a nuclear power plant – says Paweł Przybylski, CEO of ONDE.

– Gaining ONDE as a strategic investor will open up new development opportunities for us as part of a large and experienced organisation. It will give our company the impetus to scale up its operations and deliver larger projects – comments Przemysław Chojnowski, President of the Management Board of Olmex SA.

Under the Transmission Grid Development Plan for 2025-2034, PSE plans to build 4,700 km of new 400 kV lines, as well as 28 new substations and 110 modernised substations, with total capital expenditure exceeding PLN 64 billion. Subsequent projections put this figure at approximately PLN 66 billion by 2036-2037. Industry estimates indicate that fully integrating renewable energy sources into Poland’s transmission and distribution grids may require investment of as much as PLN 150-200 billion, creating significant scope for continued growth in this segment over the coming decade.

The planned investment will be completed once the conditions precedent set out in the agreement have been satisfied, including obtaining clearance from the President of the Office of Competition and Consumer Protection (UOKiK).