ConocoPhillips offered to sell its network of 44 petrol stations in the Czech Republic as well as its 16.6% stake in Ceska Rafinerska, Polish daily Rzeczpospolita reports. PKN Orlen is reportedly interested buying both assets. Bidders for the network also include Lukoil and OMV, while ENI, Shell and PKN’s Unipetrol each have pre-emptive rights for ConocoPhillips’ stake in Ceska Rafinerska.
Our view: We consider the news as slightly positive for PKN Orlen. However, the potential acquisition of further stake in Ceska Rafinerska is more important than buying of 44 filling stations. If ConocoPhillips sells its stake to Unipetrol/PKN Orlen, ENI and Shell should also consider what to do with their minority position. If PKN can strengthen its control over Ceska Rafinerska, it would enable for it to make the necessary strategic improvements to the Litvinov and Kralupy refineries. Please note however, that buyout talks between PKN and the minority owners of Ceska Rafinerska have failed last year, despite the economical rationality behind the potential deal.