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Poland to merge giant fuel retailers Orlen and Lotos

The Polish government and Polish oil major PKN Orlen have agreed to acquire Lotos Group, the country’s second largest refiner.

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Author: PetrolPlaza Correspondent Daniel Infante Tuaño

​Krzysztof Tchórzewski, Minister of Energy as the State Treasury’s representative, and Daniel Obajtek, President of the PKN ORLEN Management Board, signed a letter of intent on February 27, 2018, to acquire at least a 53% interest in Lotos Group’s share capital.

The acquisition aims to create a strong and consolidated company capable of competing on international markets.

“The business decision to build a strong, integrated fuel and petrochemical group is needed for multiple reasons: the future of the two companies’ business, creation of shareholder value, national energy security, and the interests of retail customers,” Obajtek said.

Merging PKN Orlen and Grupa Lotos was already discussed years ago, he added. “The letter of intent we have signed marks a transition from long years of planning and conceptual work to actual implementation.”

Lotos Group’s core business is the production and processing of crude oil, as well as wholesale and retail sale of oil products.  It operates a network of 485 petrol stations in Poland, while Orlen has 1758 petrol stations.

The two companies would continue to operate as separate brands after the merger, according to Emerging Europe.

The transaction, subject to customary regulatory approvals, will take about a year.

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