PKN Orlen sells assets to carry on with Lotos merger

The fixed part of the price MOL is to pay for Lotos Paliwa is approx. 610 million dollars, while the variable element will depend on the debt and working capital. PKN Orlen also informed that it would purchase 144 filling stations located in Hungary, and 41 stations in Slovakia, for a total price of approx. 229 million euros.

Taking over of Lotos Group is a crucial point in the transformation, Orlen CEO Daniel Obajtek said on Wednesday, presenting partners in the aqcuisition.

"This is a very important day for our economy and the economy of the whole region. Climate policy, regulatory and market pressures demand transformation on our part, and taking quick and firm steps," Obajtek said. He added that only a diversified entity can carry out such transformation.

Obajtek also said that Orlen's acquisition processes were connected with decarbonisation and new technologies. "There are many acquisitions ahead of us, before we create a concern that will be able to compete, set trends and standards in business," he said.

Orlen chief also said that part of the funds gained from the sale of gas stations would be earmarked for further acquisitions in Central Europe, in line with strategic principles. "We are close to finalising negotiations regarding purchase of further 100 stations in the region," he said.

Poland's Deputy Prime Minister and Assets Minister Jacek Sasin said at Wednesday's press conference that the new fuel and energy conglomerate that was under way "is a great change for Polish economy".

He stressed that Orlen's expansion into new markets and territories were very important for Poland, and a chance to "accumulate power and build affluence of our citizens and people living in our region".

"This cooperation makes sense not only for Orlen, not only for Lotos, not only for this new company, or this huge Orlen that will emerge, but for Saudi Aramco as well," Sasin argued.

Obajtek praised Orlen's cooperation with Aramco, calling the company “the biggest oil producer in the world and a leader in the modern petrochemical industry."

Deputy CEO of Saudi Aramco Mohammed Al Qahtani, who was also present at the conference, said the technology being created would match "the fourth industrial revolution" in scale. He added that the parnerhips would build the future of downstream from the scratch, based on values and innovation.

The European Commission has extended the deadline for implementing the remedies until January 14 2022. The merger of PKN Orlen and Lotos will be formally completed as scheduled, in the first half of 2022.