Lotos move will strengthen energy security, Dep PM confirms

"The Lotos shareholders'... green light for continuing the merger with Orlen is a very important step towards building a multi-energy corporation and strengthening energy security. Like ourselves, the market also sees the sense of building a strong group able to compete internationally," Jacek Sasin said. Rafał Guz/PAP

Lotos oil&gas company’s EGM acceptance for key asset relocation and sale, required for a planned merger with its peer PKN Orlen, will strengthen national energy security, a Polish deputy prime minister said on Thursday.

On Thursday, the shareholders agreed to the relocation of Lotos refining assets to the group's asphalt unit, as well as to the sale of its fuel trade, biofuel, asphalt and terminal units. This was required by the European Commission as a condition of its approval of Lotos's takeover by PKN Orlen, the largest Polish oil&gas company.

"The Lotos shareholders'... green light for continuing the merger with Orlen is a very important step towards building a multi-energy corporation and strengthening energy security. Like ourselves, the market also sees the sense of building a strong group able to compete internationally," Jacek Sasin said.

He added that the Thursday decision also enabled Orlen to file to the EC for affirmation of so-called remedies accompanying the merger with respect to fuel production and wholesale, fuel logistics, retail, aviation fuel and bitumen production.

The Orlen-Lotos merger was initiated in February 2018 by a letter of intent concluded with Poland's State Treasury, which has a 53.19-percent share in the Lotos Group.