EU approves Saudi Aramco, Hungary's MOL for deal on Poland's PKN Orlen merger

The European Commission EC has approved Saudi Aramco and Hungary's MOL to buy some assets in connection with the merger of Poland's dominant oil and gas company PKN Orlen with its smaller local rival Lotos, according to the vice-president of the European Commission.

The European Commission approved the acquisition of Grupa Lotos by PKN Orlen on July 14, 2020, under the EU Merger Regulation. The approval was conditional on full compliance with a commitments package offered by PKN Orlen, EC Commissioner for Competition Margrethe Vestager, told PAP.

According to the EU, PKN Orlen had to meet its obligations and sell a 30 percent stake in the Lotos refinery and an 80 percent stake in Lotos' petrol stations. The goal was to avoid a PKN Orlen monopoly.

On July 20, 2022, Vestager said that these commitments will ensure that the relevant Polish markets remain open and competitive and that the merger will not lead to higher prices or less choice for fuels and related products for businesses and consumers in Poland. On January 12, 2022, PKN Orlen announced that it had decided to sell a 30 percent stake in Lotos Rafineria Gdanska to Saudi Aramco and 417 Lotos petrol stations in Poland to Hungarian oil and gas company MOL.

PKN Orlen also signed a long-term contract with the Saudi Arabian company for oil supplies of between 200,000 and 337,000 barrels per day.

In December of 2022, the Civic Platform, Poland's main opposition party, filed a notification with the prosecution saying that crimes could have been committed in the Saudi Aramco deal.