Norex Petroleum of Canada is reportedly being considered as the likely winner of the tender for Paramo, a small domestic refinery, 71% owned by the state. There is, however, lobbying pressure on the Ministry of Industry and Trade to fold Paramo into Unipetrol, whose bid was reportedly lower then Norex’s bid. Unipetrol reportedly bid CZK 150 per share (vs. Norex’s bid of CZK 403 per share), which we do not consider cheap. The acquisition of Paramo would expand Unipetrol’s refinery capacity, and expand the range of Unipetrol products. The winner of the tender was to have been announced this month by the government, but now it has emerged that the decision will be postponed.