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A man repairs the logo of PKN Orlen, Poland's largest oil refiner, at his service station in Warsaw, Poland, on April 28, 2016. REUTERS / Kacper Pempel
WARSAW (Reuters) – PKN Orlen, the largest oil refiner in Poland, announced Monday talks with the European Commission on the proposed acquisition of rival LotosLTSP.WA) had entered its most difficult phase.
PKN announced last year that it was planning to buy at least 53% stake in its rival Lotos (LTSP.WA), whose market capitalization is 16.6 billion zlotys (4.38 billion dollars).
He officially asked the Commission to approve last week and sources close to the situation in Brussels and Warsaw said that, due to competition concerns, PKN would face long and difficult discussions with the Commission. Commission.
"There are various difficulties, including preventive measures, discussions with the competition, it must make sense for us on the commercial level. We are doing everything to make the process successful. There is always a risk, "said Daniel Obajtek, CEO of PKN, without giving further details.
"Now that negotiations are in the most difficult phase, we are meeting the Commission much more often, we are talking to the competition," Obajtek said.
The Commission may either terminate the contract with or without conditions following its preliminary examination, or open a four-month investigation.
According to sources, PKN had to face a four-month investigation as the merger of companies ranked No. 1 and No. 2 in one sector still poses a problem for the EU competition authorities.
PKN had expressed hope to finalize the agreement by the end of the year.
Report by Agnieszka Barteczko; edited by Emelia Sithole-Matarise
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