Agreement on Orlen-MOL merger by the year's end likely

Peter Medgyessy, the Hungarian Prime Minister, will come to Poland next week with issues concerning the fuel industry high on his agenda. Both countries would like to see the merger of PKN Orlen and MOL reach a "critic mass" before EU accession next year. "The companies have reached such a phase in negotiations that a letter of intent should be signed by the end of the year, which will give room for further talks," Treasury Minister Piotr Czyżewski, told Radio PiN. According to the Polish Press Agency, the document might be signed as soon as next week. "The pace of the Treasury Ministry's work is unbelievable. However, the timing for this operation is not the best one for Orlen, as its shareholders did not feel the results of its cost cutting program," said Rafał Jankowski, a fuel sector analyst with CDM Pekao. The total capital value of the merged entity would reach about EUR 6 billion, while its annual sales would top EUR 9 billion. (Puls Biznesu, p. 1, 6)MM