The European Commission has granted PKN Orlen approval to acquire Grupa Lotos. However, the deal will be subject to conditions and extensive commitments to ensure the openness and competitiveness of Poland’s fuels markets. PKN Orlen owns one of only two refineries in Poland, while Grupa Lotos is the owner of the other refinery.
The merger between the two companies raised concern about impacts on the retail and wholesale supply of fuels in Poland. However, after an in-depth review, the European Commission decided to grant the approval based on PKN Orlen’s commitments to address the concern.
PKN Orlen’s commitments include opening an annual tender for up to 80,000 tons/year of jet fuel to competitors in Czechia as well as some assets divestments and stake sales. The company proposes to divest the following assets: 9 fuel storage depots, 389 of Lotos’ retail stations in Poland, and bitumen production plants in Poland. Meanwhile, the planned stake sales include a 30% stake in Lotos’ refinery and Lotos’s 50% stake in the jet fuel-marketing joint venture with BP.
