(288 CZK, 0,38%) announced Wednesday that three of its subsidiaries - Chemopetrol, (288 CZK, 0,38%) rafinerie and (288 CZK, 0,38%) RPA - will merge this year into a single company, (288 CZK, 0,38%) RPA. The new structure will allow us to achieve business perfection, operating efficiency and, last but not least, savings, (288 CZK, 0,38%) group CEO and board chairman Francois Vleugels was quoted saying in a press statement. (288 CZK, 0,38%) had announced in November 2006 its intention to merge Chemopetrol, its petrochemical subsidiary, and (288 CZK, 0,38%) Rafinerie, its sales unit for refined oil products, in the coming year. As a result of the merger, the two companies will be wound up without liquidation and all of their assets, liabilities and rights including labor law obligations will be transferred to their successor, (288 CZK, 0,38%) RPA.
Our view:
The merger will result in savings in administrative expenses and more transparent personnel, administrative and logical structures. We view it positively from strategic point of view however since the intention to merge these entities was already known, we expect neutral market reaction.