January 20, 2025 11:40

Negotiations are ongoing between the Polish petrochemical group Orlen and fellow Polish company Grupa Azoty for a potential acquisition of Grupa Azoty Polyolefins, which owns the Polymers Police propylene and polypropylene plant that became operational two years ago.

The agreement stipulates that Orlen—or another entity designated by it—would acquire all or part of the shares in Grupa Azoty Polyolefins currently held by Grupa Azoty, or otherwise execute the investment.
The parties have agreed that negotiations on the terms of Orlen’s potential acquisition of Grupa Azoty Polyolefins, as well as an analysis of the potential transaction (including due diligence), will be carried out by March 31, 2025. This deadline may be extended or amended without altering the agreement.

“Since December, based on the signed cooperation agreement and the earlier letter of intent, we have been working intensively on potential solutions for the future of Grupa Azoty Polyolefins,” says Adam Leszkiewicz, president of the management board of Grupa Azoty. “As a result, we can now unequivocally confirm our chosen direction, which is to sell all or part of Polyolefins’ shares held by Grupa Azoty.”
“At this stage,” he adds, “we will begin due diligence and seek to negotiate the terms of a potential transaction. At Grupa Azoty, we believe that this collaboration can bring mutual benefits. From our perspective, a potential transaction is one of the key elements of our ongoing recovery program, under which we are developing a new business model for the group.”

Grupa Azoty Polyolefins is a joint venture involving Grupa Azoty, Grupa Azoty ZCh Police, Grupa Lotos, Hyundai, and KIND.

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