Polish state energy firm Orlen enters Austria with purchase of 266 petrol stations

Polish state energy giant Orlen will take control of 266 petrol stations in Austria currently operating under the Turmöl brand after reaching an agreement to purchase the firm that owns them, Doppler Beteiligungs GmbH.

Approval from the European Commission is still required to finalise the transaction, but the Polish conglomerate hopes to receive it within a few months.

The deal announced today by Orlen, which is already the largest company in Central and Eastern Europe by revenue, is the latest in a series of moves in recent years by the firm, with government backing, to expand at home and abroad in order to become a global energy player.

“This is a great day for the Polish economy,” said Orlen’s CEO, Daniel Obajtek, today, adding that once the deal is completed his firm will have the third largest petrol station network in Austria with a 10% market share.

Orlen, which already operates 3,156 petrol stations in Poland, Germany, the Czech Republic, Slovakia, Lithuania and Hungary, aims to increase that figure to more than 3,500 by 2030.

“Once we enter the Austrian market, we will definitely achieve strategic goals faster,” the company said in a statement, noting that it would take it to 97% of its 2030 target. The deal will mean that the share of petrol stations outside Poland in Orlen’s sales network will be 44%.

Orlen estimates that, if the acquisition is finalised as planned in late 2023 or early 2024, the synergies and benefits for the two companies as a result could exceed 20 billion zloty (€4.5 billion) by 2032.

“We want these funds to support the implementation of new development projects of the merged group within 10 years, including, first and foremost, increasing the value of the ORLEN Group and the energy security of Poland and the region,” said Obajtek, who has not disclosed the costs of the acquisition.

Speaking at a press conference today, he said that Orlen “does not expect any difficulties in obtaining [the European Commission’s] approval” for the deal given that “we have not been present so far on the Austrian market”, reports the Polish Press Agency (PAP).

Recent years have seen Orlen expand rapidly by acquiring other Polish state-owned rivals, including oil and gas producer PGNiG, oil refiner Lotos, and electricity provider Energa.

The company has also recently announced plans to acquire a nitrogen fertilizer plant from Poland’s largest chemicals group, Grupa Azoty. It has also been eyeing a stake in Germany’s Schwedt oil refinery, though Obajtek this week reiterated that that would be dependent upon ending Russia’s share in its ownership.

Main image credit: Daniel Obajtek / Twitter

Alicja Ptak

Alicja Ptak is senior editor at Notes from Poland and a multimedia journalist. She previously worked for Reuters.