- The European Commission approved the acquisition under the EU Merger Regulation.
- The approval is conditional on PKN Orlen's commitments to divest assets and ensure competition.
- Divestitures include a 30% stake in Lotos' refinery, 389 retail stations, and two bitumen plants.
- The commitments aim to maintain competitive fuel prices and choices in Poland and Czechia.
EU Approval
The European Commission has approved the acquisition of Grupa Lotos by PKN Orlen under the EU Merger Regulation. This approval is conditional on PKN Orlen's full compliance with a commitments package designed to maintain market competition.
Investigation Findings
The Commission conducted an in-depth investigation, gathering extensive information and feedback from competitors and customers. Concerns were raised that the merger could harm competition in several markets, including the wholesale and retail supply of motor fuels in Poland, the supply of jet fuel in Poland and Czechia, and the supply of related products like bitumen in Poland.
Commitments and Remedies
To address these concerns, PKN Orlen offered several commitments. These include divesting a 30% stake in Lotos' refinery, nine fuel storage depots, 389 retail stations, and two bitumen production plants. Additionally, PKN Orlen will build a new jet fuel import terminal in Szczecin and release most of the capacity booked by Lotos at independent storage depots.
Market Impact
The Commission concluded that these commitments would enable purchasers of the divested businesses and other competitors to effectively compete with the merged entity. This includes maintaining competitive constraints in the wholesale diesel and gasoline markets. The decision ensures that the merger will not lead to higher prices or reduced choices for fuels and related products in Poland and Czechia.
