PKN To Offer EU Concessions On Lotos Bid

Polish oil refiner PKN Orlen  is ready to offer concessions on its plan to buy rival Lotos once EU competition regulators set out their concerns about the deal in the coming days, Reuters reported. 

State-run PKN, which wants to buy at least 53% of Lotos, is likely to get a statement of objections from the European Commission as early as this week, the sources said. 

The EU competition enforcer typically uses the statement of objections to list specific areas where mergers could result in higher prices or put pressure on rivals, which can spur the company making the takeover bid to offer concessions. 

The Commission opened a full-scale investigation into the deal in August last year, saying the deal might lead to higher prices and restrict competition. 

The Commission declined to comment while PKN was not immediately available for comment. PKN Chief Executive Daniel Obajtek told a video conference that the Lotos deal was on track. 

“It is necessary in this tough time. For the Polish economy and for the European one it is the only direction,” he said and urged the EU competition watchdog to liberalise its approach to mergers that strengthen the economy.

Full Content: Reuters

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