In an interview with the daily “Dziennik Gazeta Prawna” (DGP) Daniel Obajtek, the head of the Polish oil giant PKN Orlen, pointed out that “the market is buzzing that the merger with Lotos will not work”. In his words this kind of speculation is “nonsense”.
He stressed that strong opposition towards the purchase of Lotos had been apparent from the very beginning. At first people speculated “that the European Commission would not consent to the takeover because we will not be able to afford the capitalisation of Lotos. Meanwhile, we presented a cashless structure of the transaction,” Mr Obajtek said.
He pointed out that specific partners for the sale or exchange of Lotos assets have already been chosen, with negotiations 70 percent complete.
The head of Orlen announced that the partner with whom Lotos’ assets will be sold or exchanged will be announced in November.
He emphasised that transactions carried out by the company require due diligence. He also explained that they need “to separate the refinery from Lotos, and such complicated processes take time”. When asked about the possible timeframe, Mr Obajtek replied that it is an ongoing process and everything is under control.
The oil giant head stressed that in order to complete the separation of the refinery they need corporate approvals. “I believe that Lotos will convene a general meeting of shareholders in October, inter alia regarding this matter,” he added.
The state-owned fuel conglomerate, PKN Orlen is the largest company in the refining and petrochemical industry in Poland and one of the largest in Europe. Lotos specialises in producing lubricants, crude oil production, refining and the marketing of oil products. Their merger would create a company that would function as a giant player on the Central Eastern European market.