The Polish treasury will sell its majority stake in chemical maker Police to state-owned rival Tarnow, it said on Thursday, as the government consolidates the sector ahead of full privatization.

Tarnow offered 11.5 zlotys per share for the treasury's 59.4% in Police.

It is also in the process of purchasing an additional 40% stake in its former rival ZAK in which it is now a majority shareholder. The treasury holds 41% in ZAK.
Tarnow plans a rights issue worth 1.1 billion zlotys to finance that deal, among others.

The treasury also said on Thursday it was willing to sell all its rights to the new shares to a third party, which would lower Warsaw's stake in Tarnow.
 ING Securities would lead book-building for the transaction, the treasury added.

"Such a consolidation process is an overture to the full privatization of this part of the chemical sector," Treasury Minister Aleksander Grad said in the statement.