English Section

Poland’s PKN Orlen, Lotos complete merger: execs

01.08.2022 18:30
Poland’s two largest fuel firms, PKN Orlen and Lotos, have officially merged into one company, executives announced on Monday. 
Daniel Obajtek, CEO of Polands largest fuel company PKN Orlen, speaks to reporters in Gdańsk, northern Poland, on Monday, August 1, 2022.
Daniel Obajtek, CEO of Poland's largest fuel company PKN Orlen, speaks to reporters in Gdańsk, northern Poland, on Monday, August 1, 2022.PAP/Marcin Gadomski

PKN Orlen said a district court in the central city of Łódź had registered the merger, thereby completing the transaction. 

CEO Daniel Obajtek hailed the deal, saying: “Today our merger is becoming reality. Today we are a unified conglomerate, a conglomerate of great importance. It’s a big day for the Polish economy.”

Speaking at a news conference in the northern city of Gdańsk, Obajtek added: “The merged company will be an ever bigger driving force for our economy. It will strengthen the Polish economy.”

Obajtek also announced that the newly merged entity would soon expand further, taking over state gas company PGNiG "in late October or early November," Polish state news agency PAP reported.

Merger of energy giants

The merger of PKN Orlen and Lotos comes after the Polish government in February 2018 signed a letter of intent with PKN Orlen on the merger of the country’s biggest two fuel firms.

In June 2022, the European Union’s executive, the European Commission, gave its go-ahead to the deal.

Last month, the shareholders of PKN Orlen and Lotos Group reached an agreement on the details of the transaction, paving the way for Monday’s official completion of the merger.

100 million customers across Europe

Earlier, PKN Orlen said the merged entity would attract annual revenue of around PLN 250 billion (EUR 53 million) and service some 100 million customers in Europe. 

PKN Orlen added that the new conglomerate would ensure security of fuel and energy supplies, compete successfully on European markets, and develop renewable sources of energy, including onshore and offshore wind farms and photovoltaics.

The merged company will also invest in alternative fuels, small-scale nuclear energy and biomaterials, according to executives.


Source: IAR, PAP, orlen.pl