PKN Orlen: preparing for takeovers abroad

2005-06-13

PKN Orlen, a gas producer and distributor, is negotiating with Beckmann Mineraloelhandel, the owner of 115 filling stations in Germany, with regard to the possible takeover of these businesses, Puls Biznesu reports.
The president of Orlen Deutschland, Jean-Jacques Verschueren, told Die Welt that an offer has been made but that a decision will be made in the summer.
PKN Orlen already has 485 petrol stations in Germany, and this gives it a 3% share of the market with regard to the country as a whole and 8% in north Germany. The Orlen petrol stations operate under the Orlen or Star brands, but they are not in a healthy financial condition, having suffered a net loss of PLN 36m (€8.6m) in Q1 2005.
The opinions of analysts vary with regard to this matter, some considering it a good idea, some a mistake and some a failure in the making.
PKN Orlen is also one of 12 companies which want to buy a majority stake (51%) in the Turkish refinery, Tupras. The purchase would be part of a privatisation programme, which is a condition of assistance for Turkey from the International Monetary Fund (IMF). The date of the initial tenders was moved from 13 June to 22 June to enable companies to create consortiums. The date of the final tenders has been set for 2 September.
According to unconfirmed reports – in addition to PKN Orlen – other non-Turkish companies interested in the purchase include the Spanish Repsol, the Italian ENI, the Austrian OMV and the Dutch-English Royal Dutch/Shell, while Turkish applicants include: Petrol Ofisi, OYAK, Opet and the Zorlu Group.
According to the Italian press, the 51% package of Tupras shares is valued at about $1-1.5bn. The company covers about 86% of all production capacities of Turkish refineries, representing 32 million tonnes in 2004.