CEO of PKN (58 PLN, 1,32%) Orlen said on Wednesday a merger with Lotos (45 PLN, 0,95%) should take place as soon as possible and may be completed next year. According to Mr Kownacki all work (connected with the merger) could last between nine and 12 months. Lotos officials have said the group was not interested in a merger with PKN for now. Our view: Seemingly PKN Orlen’s management is very much interested to take over Lotos. We believe that there is a low chance for the merger of two Polish refinery in the near term as the leading opposition party (currently leading in polls) is against it. Therefore we believe that if decision on merger is to be made, than after the elections (could take place in Oktober-November). Since it is not the comment from PKN’s CEO on this matter, we expect market to react neutrally.