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ORLEN retail expansion heads West: new service stations in Germany purchased

The Polish ORLEN Group is finalising the purchase of 17 service stations in Bavaria and Baden-Württemberg in southern Germany, the company announced on Thursday (19 January).

The purchase of new service stations will increase the Group’s retail network expansion to 604 locations and extend its geographic scope. As stated in a press release from ORLEN, the transaction in Germany will be funded with proceeds from the sale of part of LOTOS service stations, one of the European Commission’s merger remedies.

“In our strategy, we have set ourselves a clear goal of expanding our retail network abroad, and we are consistently delivering on that goal. We are investing funds raised from the sale of LOTOS service stations in Germany this time. We are stepping up the network expansion and strengthening our foothold in southern states,” said Daniel Obajtek, President of the PKN ORLEN Management Board.

The acquisition is expected to close by the end of February after the Group obtains clearance from the German antitrust authority and other approvals. 

Once finalised, the acquisition will help the ORLEN Group “solidify its position” as the sixth largest service station operator in Germany, according to the press release. The 17 modern self-service stations will be acquired from Austria’s OMV. The stations are located in the southern states of Bavaria and Baden-Württemberg. 12 of the 17 sites are located on the premises of Aldi Süd discount stores. The station’s format allows customers to pay for fuel directly at the pump. The rebranding process will be completed within three months of the acquisition.

At present, the retail network operated by the ORLEN Group in Germany is made up of 587 outlets. The ORLEN Group established its retail presence in Germany following a 2003 decision of the German antitrust authority to clear BP’s acquisition of shares in the service station operator Aral, which was made conditional on the sale by BP of 4 per cent of BP/Aral’s total share of the German retail market. 495 service stations, most of them located in northern and western states, were acquired by the ORLEN Group at the time. The Group has invested over 300 million euros in Germany over the past decade, predominantly in areas related to expanding and upgrading the service station network.

In line with the ORLEN2030 strategy, the company aims to have 3,500 service stations in at least six Central European markets by 2030. The share of foreign operations in the Group’s retail network is expected to increase from 37 per cent to 45 per cent. 

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