Orlen to takeover Lotos

The Treasury plans to merge two WSE-listed, state-controlled fuel giants Orlen and Lotos, as the former company signed a letter of intent with the Polish state to take over a minimum of 53 percent stake Lotos. The deal is expected to be completed within a year and would be conducted via public share tender or share swap. “The Transaction is aimed at creating a strong, integrated company capable of better competing internationally, resistant to market fluctuations, among others through utilization of operating and costs synergies between PKN Orlen and Lotos Group,” Orlen said in a market filing. According to the Minister of Energy Krzysztof Tchórzewski the potential deal is not a threat to market conditions. “There is sufficient competition on the market, all European fuel corporations are present in Poland,” he explained. However, the head of Polish antitrust office UOKiK, Marek Niechiał, said that due to the companies significant turnover the merger should be overseen by the European Commission. PKN Orlen, is worth some PLN 40 billion according to its market capitalization, while Lotos market value is at PLN 10 billion.