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English Section

Polish fuel giant set to take control of troubled press distributor

25.11.2020 07:45
Polish fuel giant PKN Orlen is set to take control of troubled press distributor Ruch following a go-ahead from shareholders, executives have announced.
Photo:PAP/Darek Delmanowicz

PKN Orlen will acquire a 65-percent stake in Ruch, while insurers PZU and PZU Życie and Alior Bank will hold the rest of the shares, public broadcaster Polish Radio’s IAR news agency reported.

PKN Orlen CEO Daniel Obajtek said in a social media post that the acquisition of Ruch was "another significant transaction" for his company in line with its business diversification strategy.

"In this way, we will significantly expand our range and increase the possibilities of acquiring new customers," he added.

The deal was announced after PKN Orlen earlier this year secured clearance from the country’s antitrust authority to go ahead with the acquisition.

Poland’s Office of Competition and Consumer Protection (UOKiK) said in June it had approved the plan for PKN Orlen to take over Ruch after studies showed the acquisition “will not lead to a restriction of competition.”

Obajtek said at the time that the deal was part of his company's development strategy.

"We want to use business synergies to increase the value of both companies, expanding our range of products and customer base,” he said.

Ruch is a well-known brand in Poland, with a tradition going back more than a century.

The financially strapped company was a key player on the Polish press distribution market, but it ran into trouble after newspaper circulation declined amid a shift to online news, according to a report last year.


Source: PAP