MOSCOW (MRC) -- PKN Orlen (Plock, Poland), the country’s largest oil refiner and petrochemicals producer, is set to gain EU antitrust approval for its takeover of smaller rival Lotos (Gdansk, Poland) after agreeing some concessions aimed at allaying competition concerns, reported Chemweek with reference to Reuters citing people familiar with the matter.
PKN wants to buy at least 53% of Lotos. EU said it was concerned that the deal may push up prices and reduce competition in Poland, the Czech Republic, Estonia, Lithuania, Latvia, and Slovakia.
PKN last month offered to sell Lotos’s stake in a joint venture with BP called Lotos–Air BP Polska (LABP) and also pledged to supply jet fuel to LABP with the aim of creating a viable competitor. The company has since made some minor changes to the package after rivals and customers provided feedback to the European Commission, Reuters says.
The acquisition of Lotos by PKN was initiated in February 2018 by signing a letter of intent with the Polish State Treasury, holding 53.19% of voting rights. In April 2018, a due diligence process was commenced at Lotos to examine its commercial, financial, legal, and tax positions ahead of the planned acquisition. In November 2018, a draft application for approval of the concentration was submitted by PKN to the European Commission.
PKN says the aim is to build a strong entity with international potential, which would be an important player on the oil supply market. This is particularly important for the fuel and energy security of supply for Poland, but also for Central and Eastern Europe. The creation of such an entity would also increase its ability to finance large, multibillion-dollar projects. With the closing of the acquisition, Poland would join the global trend toward building major players on the fuel and energy market, PKN says.
As MRC wrote before, Honeywell has recently announced that PKN Orlen plans to use the UOP Q-Max and Phenol 3G technologies to produce 200,000 metric tons per year of phenol at its facility in Plock, Poland. UOP is providing a license for the technology, in addition to basic engineering design services, plus key equipment, catalysts and adsorbents and technical services.
Phenol is one of the main feedstocks for the production of bisphenol A (BPA), which, in its turn, is used for the production of polycarbonate (PC).
According to MRC's ScanPlast report, Russia's estimated consumption of polycarbonate (PC) granules (excluding imports and exports to/from Belarus) rose in January-May 2020 by 19% year on year to 38,900 tonnes (32,700 tonnes a year earlier).
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