PKN Orlen has filed a formal application for the European Commission’s approval of its proposed acquisition of Lotos Group. The completion of the process would result in a single strong internally integrated entity with international potential, whose position in the oil supply market would be even more prominent.
PKN Orlen’s application includes, among other things, the proposed concept of the transaction, overview of the parties’ activities in certain relevant markets, and arguments concerning the merger’s impact on competition in those markets.
It is accompanied by a package of internal documents of both companies, which are to allow the European Commission to review the validity of PKN Orlen’s case. “We have taken up this challenge seeing the merger as a requisite driver of the business future of the combined companies, their shareholder value and energy security of Poland, serving the interests of both retail customers and local communities,” said the President of the Management Board of PKN Orlen, Daniel Obajtek. He added that “smooth execution of the process is a priority for us, the formal application we have just submitted to the European Commission best showing how determined and effective we are in its pursuit”. “In business, scale matters. This rule of thumb is understood by all major European and global players in the fuel and energy business, who have long since gone through their own consolidation efforts. A single strong entity would be well-placed to successfully compete in a demanding market, lend greater stability to the national economy, also in fuel prices, and ramp up its own growth-oriented investments,” said the chairman of PKN Orlen. (http://www.tvn24.pl)