PKN Orlen expects the European Union to approve its takeover of Mazeikiu Nafta by early November. The company plans to submit its application to the European Commission in late September, after which the EU's executive arm has 25 working days to approve or reject the transaction. According to Orlen Deputy Chief Executive Cezary Smorszczewski, there should not be any obstacles to the approval.
Our view:
If there is no delay in EU approval, PKN Orlen will be able to close the deal in 1Q07 in line with original plans. Although some investors are not fully happy with this deal, market has already priced in the potential impacts, we believe.