Hungary: PKN Orlen Poland wants to take over MOL’s share in INA Oil industry company, SEE Energy News
Polish oil company PKN Orlen (Polski Koncern Noftowy) is interested in buying MOL’s share in INA Oil industry of Croatia which is majority owned by Hungarian MOL energy company.
Allegedly the representatives of Polish companies have already had several meetings with MOL representatives. So far, the talks stopped because, in the opinion of the Poles, the high prices Hungarians seek. MOL reportedly asks around about 3 billion EUR for 49 percent of INA and the Poles believe that this is too much and offer about 1.5 billion EUR.
In 2002nd, PKN Orlen intended to apply to the competition for the purchase of 25 percent plus one share of INA, but because of the conditions of competition had to give up.
PKN Orlen is one of the largest oil companies in Central Europe whose income last year amounted to 36.1 billion dollars. Except in Polish, the company has its company in Germany, the Czech Republic and Lithuania. Only in Poland it has more than 2,000 gas stations and 580 in Germany. They also have two refineries in the Czech Republic and Lithuania. In 2006th, the company has implemented its largest acquisition when bought the refinery Mazeikiu Naftafrom Yukos in Lithuania.
A year earlier it negotiated the merger with the Hungarian MOL.
Negotiations were well advanced, but then failed due to political pressures. If the merger had succeeded, it would have managed to secure one of the largest oil companies in Europe. At this moment PKN Orlen has more than 24 thousand employees in four countries. Polish company for its capacity and size is much larger than the MOL and it is one of the largest oil companies in Central Europe. Strategically eventual purchase of MOL shares in INA by PKN Orlen would be good for Croatia because it would avoid the entry of Russian capital into the company, which is vehemently opposed to the US State Department.
They have repeatedly warned MOL not to sell its share to the Russian companies and thus to enable the arrival of the Russians in this area.
Besides the Polish PKN Orlen, most recently Klesch Group has appeared as a potential Ina buyer. Bloomberg also announced that Klesch Group conducted due diligence in the national oil company. American billionaire Gary Klesch, owner of the Klesch Group,said in September that he wanted to buy five or six refineries in Europe.