The government gets its way. Hungarian MOL takes over Lotos stations, and Saudi Aramco takes over shares in the refinery

On Wednesday at At 11.00 a press conference began, at which the authorities presented the terms of the takeover of part of another fuel giant. The merger with Lotos is possible only on the condition that part of the entrepreneur’s assets are sold to external entities.

Hungarian MOL will take over part of the Lotos station

According to Orlen, Lotos will take over 417 petrol stations for USD 610 million by MOL – the Hungarian giant of the fuel market. As part of the same transaction, Orlen takes over 185 MOL stations in Hungary and Slovakia.

– This is a historic moment. We are implementing a project that was mentioned by many of our predecessors, but they lacked courage and determination. We form the strongest fuel and energy concern in this part of Europe. The merger of PKN Orlen and Grupa Lotos is a gigantic opportunity for the development of Poland – said Daniel Obajtek, President of Orlen, during a press conference.

30 percent shares in Rafineria Gdanska are transferred to Saudi Aramco

Conditional consent to the acquisition of Lotos was issued by the European Commission in mid-July 2020. It was reported then that it was about, among other things, the sale of 30 percent of shares in the acquired Grupa Lotos refinery along with a package of remedial rights and 80 percent of its stations.

Orlen also indicated a partner of PKN Orlen, who will cooperate with it on the market of refining and wholesale assets as well as aviation fuels. This is Saudi Arabian Oil Company. A preliminary agreement was concluded between Lotosem and Aramco Overseas Company for the sale of 30 percent. shares in Lotos Asfalt and shares in Rafineria Gdanska – we read in the press release.

The Saudi company is the largest oil producer. In 2019, its assets were estimated at two trillion dollars.

PKN Orlen and Lotos are merging. The Union is waiting for the conditions for consent to be met

The decision on Orlen and Lotos was announced two days before the date indicated by the European Union authorities. On Friday – January 14 – the deadline for presenting the European Commission with remedial measures related to the largest merger on the Polish market – the merger of PKN Orlen and the Lotos Group.

These are steps allowing the Płock concern to meet the obligations indicated by Brussels, which are to protect the Polish market against excessive concentration.

Poland has to sell a fragment of Lotos. This is a condition for consenting to the merger with Orlen

Other commitments include the sale of nine fuel depots to an independent logistics operator and the construction of a new jet fuel import terminal in Szczecin, which would be transferred to him.

Recently, unofficial information has appeared in the media about potential partners interested in taking over Lotos’s assets. Therefore, on Sunday, the concern issued a statement in which it was emphasized that negotiations with partners for remedial measures in connection with the takeover of Grupa Lotos by PKN Orlen have not been finalized, therefore media reports on the selection of potential partners are only speculations.

The process of taking over the capital of the Gdańsk company by PKN Orlen began in February 2018, when a letter of intent was signed with the State Treasury, which holds 53.19 percent of votes in Lotos at the general meeting of shareholders. The merger is expected to be completed in the first half of 2022.