Poland looks at domestic merger options for refiner Grupa Lotos

20 January 2012 17:23  [Source: ICIS news]

LONDON (ICIS)--Poland’s Treasury Ministry is to continue its search for a strategic partner for the country’s second-largest refiner Grupa Lotos and may opt for a domestic tie-up as the solution, the ministry said on Friday.

However, the ministry said it was cautious about suggestions that the best solution would be a merger with state-controlled oil, chemicals and petrochemicals group PKN Orlen, because competition issues would inevitably be raised about the resultant concentration of market weight, it added.

Another possible strategic partner for Grupa Lotos was Polish state-held gas monopoly PGNiG, the ministry said.

In December, the ministry blamed market turbulence in Europe after it received no binding bids in an attempted privatisation of the refiner.

Grupa Lotos is also a biodiesel component maker, with a capacity of 100,000 tonne/year of fatty acid methyl esters (FAME).

($1 = €0.77)

By: Will Conroy
+44 20 8652 3214

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