EC approves merger of Orlen and Lotos
17:59
The European Commission has consented for PKN Orlen to take over Lotos Group, strengthening the former company's position as the largest fuel company in Central and Eastern Europe. Earlier, Brussels demanded introducing solutions that would protect the market against creating a monopoly.
PKN Orlen declared its desire to merge with Lotos Group back in 2018. However, the European Commission must approve the merger of such large companies, ensuring that the common EU market is neither forcing its own companies on the states nor the emergence of monopolies. In 2019, a proposal to this effect was submitted to Brussels.
In July 2020. The EC had already given conditional approval for the merger of two Polish fuel companies with a dominant state shareholding, but those conditions included PKN Orlen selling some of its assets or exchanging them in markets other than Poland. Thus, part of Orlen's gas stations will be acquired by the Hungarian company MOL, in return for which Orlen will take over stations in Hungary and Slovakia. In turn, some shares in Rafineria Gdańska will be purchased by the Saudi oil company Aramco.
In January this year, Orlen officially presented its plan to the EC, which proceeded to analyze it. Now it has given its final approval for the merger of PKN Orlen and Lotos.
In turn, the company's CEO Daniel Obajtek commenting on the EC's decision, said it was "a historic moment for both companies and the entire Polish economy."
