Orlen – Lotos merger. Sale of Lotos petrol stations and refineries. Who is to buy? Saudi Aramco and MOL – what do we know about the companies?

PKN Orlen announced that the Saudi company Saudi Aramco will buy shares in the refinery owned by Lotos, the Hungarian concern MOL will take over 417 Lotos stations, and the Polish Unimot – fuel depots. The sale of shares in the refinery and most of Lotos petrol stations is related to the planned merger of Orlen and Lotos. The condition imposed by the European Commission was the sale by Orlen of part of the assets of the acquired company.

On Wednesday, PKN Orlen announced that in order to implement the so-called remedial measures to be able to take over Lotos, chose four partners, which, inter alia, will buy individual parts of the Gdańsk-based company. Saudi Arabian Oil Company (Saudi Aramco) will take over part of the Lotos refinery, wholesale and aviation fuel area. Hungarian concern MOL will buy 417 Lotos fuel stations in Poland, Unimot – logistics assets, including fuel depots, and Hungarian Rossi Biofuel – assets in the area of ​​biofuels.

The fixed element of the price that MOL is to pay for Lotos Paliwa is approx. USD 610 million, the variable element will depend on debt and working capital. Orlen’s announcement also shows that PKN Orlen is to acquire 144 fuel stations located in Hungary and 41 fuel stations located in Slovakia, for a total price of approx. EUR 229 million.

Obajtek on the merger of Orlen and Lotos

– The acquisition of Grupa Lotos is a critical moment of transformation – said the president of PKN Orlen, Daniel Obajtek, on Wednesday presenting the partners in the acquisition of Lotos.

– It is a very important day for our economy and the economy of the entire region. Climate policy, regulatory and market pressure require us to transform, to take quick, decisive steps, said Obajtek. As he added, only a diversified subject can carry out such a transformation.

Obajtek noted that Orlen’s acquisition processes are related to decarbonisation and new technologies. – We still have a lot of acquisitions ahead of us to create a concern that will be able to compete, set trends and standards in business – he said. As he argued, everything that happened during the pandemic in economies justifies the process of all these connections.

The head of Orlen also stated that some of the funds obtained from the sale of petrol stations will be allocated to further acquisitions in Central Europe, in line with strategic assumptions. – We are close to finalizing negotiations regarding the acquisition of another hundred petrol stations in the region – he said.

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– The new fuel and energy concern, which is being created, is a great opportunity for the Polish economy – said Jacek Sasin, Deputy Prime Minister, Minister of State Assets at a press conference on Wednesday.

He emphasized how important for Poland is the possibility of Orlen entering new markets and increasing the territorial range. He added that cooperation with Saudi Aramco is an opportunity to “develop faster, build power and build the wealth of our citizens and the citizens of our region”.

– This is a cooperation that makes sense not only for Orlen, not only for Lotos, not only for this new company, that is the great Orlen that will be created, but also for Saudi Aramco – said the Deputy Prime Minister.

Agreement with Saudi Aramco

The price in the preliminary agreement for the shares in Lotos Asfalt to be paid by Aramco is set at approx. PLN 1.15 billion. PKN Orlen has also signed a long-term contract with a Saudi company for the supply of crude oil in the amount of 200 to 337 thousand. barrels a day.

– Saudi Aramco will be a strategic partner that will cover 30 percent of the separated Gdańsk Refinery, wholesale and aviation fuel area – emphasized Obajtek.

The president of PKN Orlen said that Saudi Aramco’s partner sets trends on the markets, is the largest oil producer in the world and a leader in modern petrochemicals.

– Saudi Aramco does not follow trends, but sets them. It is the largest oil producer in the world, a leader in the development of modern petrochemicals, has access to modern technologies, thousands of patents, and a research and development base all over the world – he said.

– We create technology tailored to the fourth industrial revolution, partnership is opening new areas of activity for our companies – said Vice President Saudi Aramco Mohammed Al Qahtani. – We are rebuilding the future of downstream. We will work hand in hand with Orlen to create value and innovation, said Al Qahtani.

The merger of Orlen and Lotos. Conditions set by the European Commission

In order for PKN Orlen and Lotos companies controlled by the State Treasury to merge, Orlen must sell some of Lotos’s assets. It goes, among others by 30 percent refineries, 80 percent its stations and part of its logistics infrastructure. This is called countermeasures against monopoly. the European Commission in November it gave consent to PKN Orlen to extend the deadline for the implementation of remedial conditions to January 14, 2022.

Saudi Aramco and MOL – what do we know about the companies?

Saudi Aramco (Saudi Arabian Oil Company) is a Saudi oil and gas company, the world’s largest oil producer. In a report for the third quarter of 2021, the company said it had managed to generate a net profit of $ 30.4 billion, and that a dividend of $ 18.8 billion would be paid in the fourth quarter.

The largest shareholders of Saudi Aramco are: the government of Saudi Arabia (98.2%), The Vanguard Group, Inc. (0.039%) and BlackRock Fund Advisors (0.019%)

MOTH (Magyar Olaj – és Gázipari Részvénytársaság) is a Hungarian crude oil processing and fuel distribution company listed on the Budapest and Warsaw stock exchanges.

On the website of the Polish stock exchange, we can read that MOL “is a leading company in the oil and gas sector in Central Europe, as well as the largest company in Hungary in terms of sales revenues.” “The concern is engaged in the exploration and production of oil and gas (including fields in Russia and Kazakhstan), oil refining as well as wholesale and retail sale of refinery products. It controls Slovak Slovnaft and Italian refinery IES. It owns shares in Croatian oil company INA It is active in over 30 countries, “it wrote.

The company’s largest shareholders are: MOL New Europe Foundation (10.49%), Maecenas Universitatis Corvini Foundation (10%), Mathias Corvinus Collegium Foundation (10%), Oman Oil Company SAOC (7.14%), OTP Bank Plc. (6.22%), MOL Magyar Olaj – es Gazipari Nyilvanosan Mukodo Reszvenytarsasag (2.58%).

Unimot in turn, it is a private company operating on the diesel oil wholesale and retail markets for other liquid fuels, both in Poland and abroad. Unimot has a network of Avia fuel stations, it is also developing the photovoltaic segment and investing in renewable energy.

Rossi Biofuel is a Hungarian company, an important producer of biofuels. It belongs to the Envien concern, operating in the field of biofuels in several countries of Central and Eastern Europe.

Main photo source: Wojciech Stróżyk / REPORTER / East News

About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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