Oil refiner and petrol retailer PKN ORLEN has secured the European Commission’s clearance of its intended merger with oil company Lotos Group.
Image credit: PKN Orlen
Closing an important phase of the merger process, the antitrust clearance marks a leap forward in building a strong multi-utility group that will effectively carry out the energy transition and ensure Poland’s energy security and independence in terms of feedstock supplies.
The new ORLEN Group will be based on a fully integrated value chain, from upstream exploration and production, through refining, petrochemical production and advanced power generation, to retail.
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This means long-term profits for the companies and their shareholders, stability of energy supplies for the Polish economy at the lowest possible prices, a wide range of attractive customer services, and even more excellent support for social initiatives.
The merger between PKN ORLEN and the LOTOS Group is linked inextricably to the energy security of Poland and the entire region of Central Europe, including Lithuania, Latvia, Estonia, the Czech Republic and Slovakia.
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The merger will create a single, strong multi-utility player with annual revenue of approximately PLN 250 billion, which will successfully carry out business in a competitive market and provide services to about 100 million customers in Europe, ensuring the security of fuel and energy supplies.
A vital part of the merger between PKN ORLEN and the LOTOS Group is the agreement with Saudi Aramco, which means tighter bonds between PKN ORLEN and a stable partner, the world’s largest oil company with extensive experience and technologies that will enable further strong growth of the combined entity.
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Following the merger with the LOTOS Group, supplies from the Arabian Peninsula will cover as much as 45% of the new ORLEN Group’s overall demand. For the Group this arrangement will mean a reliable source of crude oil of sustainably high quality, and for the Polish economy – it will mark further progress in the efforts to diversify crude oil supplies.
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