Deals
Traps and Hurdles Loom on Poland's Path Toward Oil Champion
- Risks include whether Orlen shareholders will back transaction
- Fuel refiners and retailers also face EU antitrust approvals
This article is for subscribers only.
Shares in Poland’s PKN Orlen SA and Grupa Lotos SA jumped on news that the state-controlled fuel companies signed a letter of intent to merge, moving closer to creating a national champion with $35 billion in annual sales.
But the plan to create a national oil champion to succeed after decades of aborted attempts faces a slew of hurdles. The deal driven by Prime Minister Mateusz Morawiecki’s government must overcome obstacles including potential opposition from minority owners and European Union regulators.