Poland Plans to Create an Oil Company with $35 Billion of Sales

Poland’s government plans to create an oil company that can compete in European markets as part of its plan to forge national champions and help drive its vision for the economy.

State-controlled fuel refiner PKN Orlen SA, the country’s largest company by sales, signed a letter of intent to buy the government’s majority stake in Grupa Lotos SA, sending shares in both companies up at least 7 percent. The combined entity would have about $35 billion of annual revenue, consolidating Orlen’s position as eastern Europe’s biggest refiner, though still dwarfed by western Europe’s biggest oil companies. ...