October 17, 2025 15:07

Negotiations are nearing completion for the acquisition of GA Polyolefins by Orlen, Poland’s leading petrochemical group.

Currently controlled by Grupa Azoty, GA Polyolefins owns the Polymers Police facility, a major propylene and polypropylene production site that began operations in 2023 after nearly four years of construction and an investment of close to €1.6 billion.

Following multiple rounds of interrupted talks, Orlen has now submitted a nonbinding offer to acquire 100% of GA Polyolefins’ shares, including all assets, on a cash-free, debt-free basis. The proposed value of the transaction amounts to €1.022 billion, which also includes funding for the restructuring of all outstanding liabilities and claims, as well as the buyout of shares held by the remaining stakeholders.

“We are thoroughly reviewing the terms of Orlen’s offer for the potential acquisition of shares in Grupa Azoty Polyolefins. After completing the necessary analyses and consultations, we will decide on the next steps and inform the capital market accordingly,” commented Andrzej Skolmowski, president of the management board of Grupa Azoty.

At present, the ownership structure of GA Polyolefins includes Grupa Azoty Police with 34.4%, Grupa Azoty with 30.5%, Orlen holding a 17.3% stake, Hyundai Engineering Co. with 16.6%, and the Korea Overseas Infrastructure and Urban Development Support Corporation holding the remaining 1.1%.

The offer is still subject to several conditions precedent, including the completion of a restructuring process to settle all liabilities and claims, the final closure of the EPC contract related to the Polimery Police project, the finalisation of a share purchase agreement with all shareholders, a satisfactory due diligence outcome, and the receipt of all necessary corporate and administrative approvals to finalise the deal.

The Polymers Police complex, which includes integrated propylene and polypropylene production units, boasts a nameplate capacity of 429,000 tonnes per year of propylene and 437,000 tonnes per year of polypropylene, the latter commercialised under the Gryfilen brand. The facility represents one of the most significant investments in Poland’s petrochemical infrastructure in recent years and is considered strategic for the national and regional plastics value chain.

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