Polish Economy Minister Piotr Wozniak said yesterday that recent proposals to change the management of Mazeikiu Nafta isn't good for the transaction, adding that he is looking at the situation with “moderate worry", Interfax reports. Earlier the week PKN Orlen said that, prior to the completion of the acquisition, continuity of management should be maintained – while all major decisions, including personnel ones, should be made after the transaction is completed.
Our view: Despite current turbulences regarding the management, we believe that the US$ 2bn+ transaction will be completed soon. We do not expect that the final purchase price will be changed; however, certain terms of the contract might be renegotiated. We consider the news as neutral.