PKN Orlen secures EC approval for Grupa Lotos takeover
PKN Orlen's merger with fellow Polish oil company Grupa Lotos has been sanctioned by the European Commission, it said June 20.
The deal is part of a tripartite merger that also includes Polish gas group PGNiG. PGNiG's merger with PKN Orlen received regulatory approval from Polish authorities earlier this year, and the two companies had in July 2020 locked in EU antitrust approval for the Lotos takeover.
The newly-named Orlen Group will operate as a fully integrated energy value chain for central Europe, spanning local oil refineries, petrochemical plants and gas-fired power stations, to fuel retail outlets and upstream E&P concessions overseas.
PKN Orlen expects the deal to significantly benefit regional energy security, creating an entity with around PLN 250bn ($56.6bn) in annual revenues, and about 100mn downstream customers across Poland, Lithuania, Latvia, Estonia, the Czech Republic and Latvia.
Ahead of the merger, PKN Orlen and Lotos have also entered into an agreement with Saudi Aramco to explore joint petrochemical and R&D projects, strengthening the global credentials of the new ORLEN Group entity.
Daniel Obajtek, president of PKN Orlen's management board, said: "The European Commission’s clearance has brought us much closer to stepping up joint investments of key importance to Poland and the entire region. The merger is a very challenging process, but we have determinedly followed it step by step, aware of the importance of the transaction."