Poland’s Orlen seals Lotos sell-off to Unimot

Polish energy giant Orlen announced the completion on Friday 7 April of the process of implementing remedies, and Lotos Terminale finally becoming the property of fuel importer Unimot.

The sale was the last stage in the implementation of conditions set by the European Commission (EC) for merging Orlen with Lotos, which is listed on the Warsaw Stock Exchange.

The sale agreement for approximately PLN 450mn (EUR 95.43mn) was signed on January 12, before the transaction was closed on Friday, 7 April.

In January 2022 Orlen submitted a proposal of remedies and partners for their implementation, which the EC then accepted. 

The takeover of Lotos by PKN Orlen, which the Polish government considers a national strategic asset, was connected to the legal necessity of selling part of its Gdansk businesses.

Shares in the Gdansk Refinery were bought by oil giant Saudi Aramco and several hundred gas stations by Hungarian MOL. Additionally the asphalt operations of Rafineria Gdanska and the fuel depots in Szczecin, Gutkow, Gdansk and Boleslawiec were acquired by Unimot, which has now changed its name to Unimot Terminale.

Unimot gains 400 on payroll with deal

The acquisition of Lotos Terminale, which includes all other acquired companies, is another significant stage for Unimot Group as the largest independent operator on the Polish fuel market. 

Unimot president Adam Sikorski said “in our business strategy for 2018-23, we outlined the need to diversify sources of income and now we are using the opportunity that has appeared on the market to expand the scale and areas of activity. 

“All the acquired companies will continue their current operations and will additionally benefit from the resources, experience, and business relations of our group, also in the international environment. 

“Professional management and about 400 experienced employees are transferred to the Unimot Group and this is a milestone for our further development,” Sikorski added.

Companies say merger will strengthen both companies

Last summer PKN Orlen president Daniel Obajtek said the company’s merger with Lotos will pave the way for “unlocking synergies inherent in leveraging the potential of the two companies… help increase capital expenditure, step up the execution of the most profitable projects, increase Poland’s energy independence and ensure stable fuel supplies for all customers”.

In the last four years, PKN Orlen has grown rapidly and generating profits in the range of tens of millions of zlotys in 2021. The merger process involved over 100 experts at the companies, mergers and acquisitions specialists, and external lawyers.