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The Warsaw Voice » Business » February 12, 2018
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Merger of two giants closer
February 12, 2018   
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Krzysztof Tchorzewski
Listed fuel concerns PKN Orlen and Lotos are closer to what could become a merger, dailies Rzeczpospolita and Parkiet write, citing unspecified sources in the ministry of energy and government circles. The idea is backed by both PM Mateusz Morawiecki and energy minister Krzysztof Tchorzewski, the insiders say.
Orlen and Lotos declined to comment, but the initial action plan has been on the table for some months now, and managers responsible for execution of its particular stages in 2018 already appointed, the dailies write citing Filip Elzanowski from the ECh&W legal office, as well as some unspecified sources.
Following the merger, Orlen - seen as the taking-over party - would hike its revenues by ca. 25% and could overtake Central European rival OMV, while growing to a size comparable with the Spanish Repsol, Krystian Kamyk from consultancy A.T. Kearney observes.
The merger would also let the new giant use the domestic processing installations in a more effective way, improve logistics and transfer Orlen's petchem business to Lotos's Gdansk premises, DM BDM's analyst Krzysztof Pado says.
Income and cost synergies would be another advantages, Vestor DM's Beata Szparaga Wisniewska adds, while warning that European Commission's consent to merger is uncertain due to the risk of retail prices dictate.
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