The Management Board of Grupa Azoty adopted a resolution o entering into talks with Orlen to discontinue further activities regarding the potential acquisition of Grupa Azoty Zakłady Azotowe “Puławy” by Orlen – Azoty announced in a stock exchange announcement. The Management Board emphasized that the decision was made “after taking into account the results of the analysis of the impact of the transaction on the group and the concept of building its value prepared by an independent advisor, as well as the recommendations of the project steering committee.”
— Analyzes completed by an external consulting company, taking into account market conditions and the resulting clear strategic recommendations, do not provide grounds for continuing talks regarding the potential acquisition of Grupa Azoty Puławy by Orlen. We are continuing further, broader analyzes that will allow us to develop further actions leading to the return of the capital group to the path of rebuilding its market value. In parallel, we are implementing activities aimed at further optimization of our businesses and continuing talks with financing institutions. We constantly monitor the market and adapt production to the current demand, which has been growing steadily in recent months, explained Marek Wadowski, vice-president of Grupa Azoty.
Difficult negotiations
In June, the Orlen Group announced the commencement of talks regarding the possibility of taking over Grupa Azoty Puławy – the largest fertilizer factory in Poland, owned by Grupa Azoty. In this way, the company led by Daniel Obajtek was supposed to pull the chemical giant out of the financial hole and become a major player on the domestic fertilizer market. Orlen already has the Anwil fertilizer company in its structures. Obajtek claimed that he wanted to complete the takeover process by the end of this year. — We are starting to investigate the company. But it is not a difficult process, I think we will be able to complete it within six months, said Orlen’s president in June. When asked by Business Insider, whether it’s a rescue operation or a business operation, he replied, “Both.”
Our unofficial information shows that Azoty’s management was not thrilled with Orlen’s proposal from the beginning and he was reluctant to sell his most valuable company. The transaction was also criticized by stock market analysts who claimed that it would bring many benefits to Orlen, but would harm Grupa Azoty, which would lose its best, most efficient installations to the group that is the largest domestic supplier of gas – a key raw material for the production of fertilizers. Today, Puławy is valued at almost PLN 1.2 billion on the Warsaw Stock Exchange. However, the chemical group had serious financial problems related to the difficult market situation, and the potential absorption of Puławy by Orlen was approved by the PiS government. The board was therefore pushed to the wall.
Today, when it is already known that the PiS government will lose power, there is an unexpected turn in the matter and the management board of Azoty leaves the negotiating table with Orlen.
2023-11-20 16:37:53
#Azoty #Orlen #clash #state #giants
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