PKN Orlen said on Monday it would complete its US$2.6 bn purchase of Mazeikiu Nafta by December 15, undeterred by damage to the refinery caused by fire. PKN Orlen has received reports of Lithuanian refinery from the third phase of the due diligence process, which indicated that closing of the transaction could be assessed as legitimate. In the meantime the Lithuanian government and PKN Orlen have agreed all the details of preparations to complete a purchase and sale deal for Mazeikiu Nafta.
Our view: This was previously indicated by the Orlen’s management and thus widely expected by the market, that the results of the investigation are unlikely to deter the deal. We expect the news to have a neutral trading impact on the stock.