Orlen management approves Lotos merger plan
The management board of Poland's dominant oil and gas company, PKN Orlen, approved on Thursday a draft plan to merge with domestic rival Lotos, Orlen announced.
Orlen also said that the merger would occur through the transfer of all remaining Lotos assets to Orlen in return for shares, which PKN will grant to Lotos shareholders.
PKN Orlen explained in a press release that in return for one share in Lotos Group, the company's shareholders would receive 1.075 shares in Orlen.
In July 2020, the European Commission approved the acquisition of Lotos Group by PKN Orlen under the condition that certain divestments are carried out. Both Lotos and Orlen are controlled by the Polish state.
Saudi Aramco, a Saudi Arabian oil company, bought a stake in the refining subsidiary of Lotos, while the MOL Group, a Hungarian oil and gas company, purchased 417 petrol stations from Lotos, and Orlen bought 144 petrol stations operated by the MOL Group in Hungary and 41 in Slovakia.
According to Obajtek, cooperation with a strong partner, a global petrochemical leader, and world's largest oil producer will support the implementation of this goal.
"As a result, we will ensure further and dynamic development of our business," he said, adding that this would be beneficial to the group's shareholders, individual customers and local communities.