Lithuania's government has given up its right to buy shares in refiner AB Mazeikiu Nafta from Yukos, clearing the way for PKN Orlen to buy the stake, PKN Orlen said in a regulatory statement yesterday.
Our view:
The decision of the Lithuanian state was the necessary condition of the general agreement between PKN Orlen, Yukos and Lithuanian state, therefore we see this news as neutral. The other condition such as obtaining the European Commission competition clearance is still to be fulfilled. The deal is expected to be closed in the first quarter of 2007.