trending Market Intelligence /marketintelligence/en/news-insights/trending/ga9jfxarb8pmkqhmtowlug2 content esgSubNav
In This List

Polish oil refiner Orlen to acquire LOTOS

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Price wars in India: Disney+ Hotstar vs. Amazon Prime Video vs. Netflix

Blog

Volume of Investment Research Reports on Inflation Increased in Q4 2021

Blog

Using ESG Analysis to Support a Sustainable Future


Polish oil refiner Orlen to acquire LOTOS

Daniel Obajtek, president of the management board of Polish state-owned oil refiner and retailer PKN Orlen SA, has signed a letter of intent to initiate the process of acquiring control of integrated oil company Grupa LOTOS Spólka Akcyjna.

Orlen said in a brief regulatory statement that it wants to acquire the government's 53% stake in LOTOS, which is valued at 5.8 billion Polish zlotys. The two companies have a combined market value of $15.6 billion, according to Bloomberg News.

The companies did not specify how they intend to proceed with the merger. If Orlen opts for a stock-for-stock transaction, 80% of its shareholders would need to back a possible share issue, which may face opposition from minority owners. In the case of a cash deal, Orlen would not only have to buy the state's 53% stake but would also have to make an offer for as much as 66% in LOTOS as required under Polish law, Bloomberg News said.

Orlen also said the acquisition is contingent on changes to a Polish law that bars the State Treasury from selling shares of state-controlled companies.

The deal would also draw scrutiny from European antitrust regulators, Bloomberg News noted.

As of March 1, US$1 was equivalent to 3.43 Polish zlotys.