Summary – New player on the Polish fuel market

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The long-planned merger of Orlen and Lotos will soon take place. This will widen the possible sphere of influence of the Polish company, and the newly formed concern will have greater negotiating power and a stronger position in the entire region. The merger of the two entities must, however, take place on terms negotiated with the European Commission, which has decided that a transaction on this scale poses
a threat to competitiveness because the new entity will have such a dominant position and advantage over smaller players that nothing will stand in the way of cutting them off from the supply of raw materials and, in practice, excluding them from the market. Hence, under the agreed terms, the newly formed Polish company will have to sell off some of its assets (primarily a 30 percent stake in Rafineria Gdańska and almost 80 percent of Lotos’ fuel stations). The questions remain: To whom? At what price? And on what terms?

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