Orlen CEO says he is optimistic Azoty Polyolefins deal can be closed soon
LYB•LyondellBasell arbitration and deal background
- U.S.-European chemical company LyondellBasell \LYB.N has started arbitration against Orlen, claiming the acquisition would breach a non-compete clause from their long-standing joint venture agreement, according to Poland's WNP.pl business news portal.
- "I'm optimistic that the deal can be closed soon," Fafara told reporters when asked if the arbitration with LyondellBasell would jeopardise the deal agreed earlier this year.
- Polish state-owned refiner Orlen said in April it had signed a preliminary agreement with Polish state-controlled chemicals group Grupa Azoty to acquire all the remaining shares in its Grupa Azoty Polyolefins unit.
- The transaction involves the acquisition of shares in the company and the provision by Orlen of the 1.35 billion zlotys ($362.4 million) in financing required to complete its restructuring.
- Orlen currently holds a 17.3% stake, which will rise to 100% upon completion of the transaction planned for the third quarter.
Orlen CEO remains optimistic despite arbitration risk
WARSAW, Sept. 3 (Reuters) - Orlen CEO Ireneusz Fafara is optimistic a deal to buy chemicals company Grupa Azoty's Polimery Police plant could be closed soon despite a legal dispute with its joint venture partner.
Shares in Azoty fell as much as 5.2% on Thursday after a report that the dispute could jeopardise the sale. They later recovered some losses, and by 1029 GMT were down about 1%.
