ORLEN has signed a preliminary agreement to acquire all remaining shares of Grupa Azoty Polyolefins, increasing its stake from 17.3% to full ownership. The transaction is expected to be finalized in the third quarter of this year.
According to Ireneusz Fąfara, the acquisition of the polyolefins installation in Police will significantly strengthen ORLEN’s position in the European chemicals market. Once completed, the company is set to become the sixth-largest polypropylene producer in Europe. Despite challenging market conditions, ORLEN believes it has the expertise to unlock the full value of the installation and optimize both production and sales across European markets.
The agreement covers the purchase of all shares not currently held by ORLEN, along with securing the financing required to complete the restructuring of the company. As part of the transaction, ORLEN will provide PLN 1.35 billion to settle liabilities owed to creditors under restructuring proceedings and out-of-court agreements. This will result in the full repayment of the company’s obligations and the final settlement of contractual commitments.
Following the transaction, ORLEN will take over the company free of debt, except for liabilities owed to ORLEN itself, equivalent to the financing provided. Notably, the share purchase price has been set at a symbolic PLN 4. The structure of the deal also includes an earn-out mechanism for key creditors, which will be activated only after the company generates sufficient profits to fully recover ORLEN’s investment.
The acquisition is also expected to preserve around 400 jobs in the West Pomeranian region, along with several hundred additional positions linked to the plant.
