New Austrian-Hungarian oil giant on the cards?

The proposal was preceded by OMV increasing its 10% stake in MOL to 18.6% and according to OMV representatives, the merger would be an opportunity to meld the two companies' strengths. If the proposal is accepted, the two will create the largest oil concern in Central and Eastern Europe, however, according to representatives from their domestic sector competitor PKN Orlen, there is no reason to fear the move. "Of course we have to closely examine future steps, as the merger would surely lead to an increase in their capital," said Paweł Szymański, PKN Orlen's deputy president for financial issues. "In my opinion though, there is no threat to markets where our company is present." Representatives from Lotos, the second largest player in the domestic oil sector did not comment on the Austrian-Hungarian plans. According to market analysts though, one way of defending players on the domestic market would be putting the Orlen-Lotos merger back on the table for consideration. (Puls Biznesu, p. 6; Rzeczpospolita, p. B1; Parkiet, p. 1) A.K.