PGE is taking over the Rybnik power station in southern Poland, eight combined heat-and-power plants and almost 400 km of heating networks in four cities.
Energy Minister Krzysztof Tchórzewski said the deal was one of the largest transactions of its kind in Poland.
Thanks to the move, PGE is becoming a leader on the country’s energy and heat market, Polish Radio’s IAR news agency reported.
Henryk Baranowski, the CEO of PGE, said this was a historic moment for his company.
"This is a further step in implementing the groups strategy, which was announced in September 2016," he added.