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ORLEN Group completes merger with Grupa Lotos

Poland’s ORLEN Group has finalised its merger with Grupa LOTOS, strengthening its leading role in the fuel and energy industry in Central and Eastern Europe.

The final step in the process that has been successfully completed was the registration of the merger by the District Court of Łódź. The merger paves the way for unlocking synergies inherent in leveraging the potential of the two companies. As an immediate effect, the merger of PKN ORLEN and Grupa LOTOS will help increase capital expenditure, step up the execution of the most profitable projects, increase the country’s energy independence and ensure stable fuel supplies for all customers.

“We are making history,” said Daniel Obajtek, President of the Management Board of PKN ORLEN. “We have merged PKN ORLEN and Grupa LOTOS today. This is the culmination of a transaction which many thought and talked about, but failed to initiate and which we have successfully carried through. […] The strong business of the new group will be built around the most valuable business segments leveraging the combined capabilities and resources of PKN ORLEN, Grupa LOTOS and, soon, PGNiG.”

Indeed, the Management Boards of PGNiG and PKN ORLEN have recently agreed on a plan for the merger of the two companies and on the exchange ratio at which PGNiG shares will be swapped for PKN ORLEN shares.

“Building a large, strong multi-utility group is a landmark business project that will stimulate further economic growth and help enhance Poland’s energy security,” said Iwona Waksmundzka-Olejniczak, President of the Management Board of PGNiG. “When PKN ORLEN and the LOTOS Group join forces, it will be easier for us to achieve the energy transition that Poland and all the other countries in Europe simply must undergo.”

Its merger with Grupa LOTOS, and eventually with PGNiG, will strengthen PKN ORLEN’s position as the leader in energy transition through investments in low- and zero-carbon energy sources. By investing in green energy, including offshore and onshore wind farms and photovoltaics, as well as alternative fuels, small modular reactors and biomaterials, the new ORLEN Group will significantly contribute to reducing the Polish economy’s dependence on fossil fuels.

Following the merger, the scale of capital expenditure to develop individual businesses formed by the multi-utility group will grow. In 2021 alone the ORLEN Group spent on CAPEX a record amount of 9.9 billion zlotys (approximately 2 billion euros), while this year the figure will break another record of 15.2 billion zlotys (approximately 3.2 billion euros).

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