The European Commission has approved the merger between Poland’s biggest oil refiner PKN Orlen and Grupa Lotos, Orlen announced. The merger aims to build a diversified multi-utility group to strengthen Poland’s energy security and to better compete with global players.
PKN Orlen had announced plans to buy Lotos back in 2018 but had to meet conditions set by the European Commission. In January, PKN Orlen has agreed to sell some assets of Grupa Lotos to other investors such as Hungarian oil and gas company MOL, and Saudi Aramco to address some competition concerns and to complete its takeover of the firm.
In June, PKN Orlen and Grupa Lotos agreed and signed a merger plan involving the transfer of the Lotos assets to PKN Orlen. In exchange for shares held in Grupa Lotos, its existing shareholders will receive shares in the enlarged PKN Orlen. Shareholders of Lotos will get 1.075 shares of PKN for each Lotos share, the companies said.
“The approval of the European Commission is a success,” President of the Management Board of PKN ORLEN, Daniel Obajtek commented upon the announcement. “This is a breakthrough moment for the effective implementation of the energy transition, increasing the independence and security of the region,” he underlined adding that the Commission’s endorsement is also a confirmation that the merger will not distort competition rules.
Now the final consent to the merger must be given by the shareholders of both companies. General shareholders’ meetings are expected to be held in July, while the merger should be registered and finalised in August.