Synergies and economies of scale in energy sector mergers typically lead to cost savings, improved operational efficiency, and enhanced profitability due to reduced duplication of resources and increased bargaining power with suppliers.

• Increased Profit Margins: Cost reductions and enhanced efficiencies can lead to higher profit margins.
• Higher Valuation: Improved financial performance and growth prospects can increase the market valuation of the merged entity.
• Cash Flow Improvements: Better financial performance can result in improved cash flow, enabling further investments and growth opportunities.
• Shareholder Value: Successful realization of synergies and economies of scale can lead to increased shareholder value through higher dividends and stock price appreciation.

Due to the issue of national energy security, the energy sector is one of the strategic ones. The energy sector has a market structure referred to as an oligopoly, as it is usually dominated by a few large energy companies. The high concentration of capital is conducive to strategic investment decisions, the implementation of large investment projects, and can also be conducive in the process of smoothly implemented green transformation of the power sector. On the other hand, the energy sector should also see the development of innovative startups developing new eco-innovations and green energy technologies, as well as the prosumer sphere of distributed energy development, in which citizens are prosumers generating energy on the basis of small home wind turbines, photovoltaic panels mounted on the roofs of houses, geothermal water intakes, etc. Thus realized, diversification both in terms of different energy sources and the diverse structure of corporations, companies and prosumers increases the scale of energy security. If large, dominant companies in the energy sector acquire, through mergers and acquisitions, other business entities operating in the sector this can increase their investment opportunities. However, it is also important that the level of competition does not significantly decrease through mergers and acquisitions, which could result in an increase in the scale of monopolistic practices by the largest, dominant companies in the sector. Another important issue is who are the key, leading shareholders in the shareholding structure of large energy companies. This issue is particularly relevant when different standards and management practices exist in state-owned companies and in commercially operating business entities in which the leading shareholders are other private companies, investment funds and banks, and whether they are domestically or internationally based. the latter issue may translate into the extent of control by national public energy regulatory institutions to which such strategic sectors of the economy as the energy industry may be subject.

I am conducting research on this issue. I have included the conclusions of my research in the following article:

IMPLEMENTATION OF THE PRINCIPLES OF SUSTAINABLE ECONOMY DEVELOPMENT AS A KEY ELEMENT OF THE PRO-ECOLOGICAL TRANSFORMATION OF THE ECONOMY TOWARDS GREEN ECONOMY AND CIRCULAR ECONOMY

Article IMPLEMENTATION OF THE PRINCIPLES OF SUSTAINABLE ECONOMY DEVE...

I invite you to get acquainted with the issues described in the above-mentioned publication and to scientific cooperation in this field.

Warm greetings,

Dariusz Prokopowicz

The above text is entirely my own work written by me on the basis of my research.

In writing this text I did not use other sources or automatic text generation systems.

Copyright by Dariusz Prokopowicz