Daniel Obajtek, CEO of PKN Orlen, said the merger was necessary for Orlen, Lotos and for the Polish economy as a whole.
"There is no room in Poland for two such concerns. We must develop and invest very quickly, and we cannot duplicate investments," he told reporters.
PKN Orlen, Poland's largest oil refiner, last year formally asked the European Commission—the executive arm of the European Union of which Poland is part—to greenlight its acquisition of the Lotos group, Poland’s No. 2 refining company.
The Commission said it was concerned that the merger could reduce competition in the supply of fuels and related markets in Poland and neighbouring countries.
But on Tuesday it announced it had approved the move, providing that Orlen meets a number of conditions, including selling 30 percent of shares in a Lotos refinery.
Referring to the planned merger, Polish Prime Minister Mateusz Morawiecki said last year that “all developed countries have long ago merged their assets in such a way.”
Cick on the 'Play' button above for an audio report