Poland's Orlen signs preliminary acquisition deal for Grupa Azoty Polyolefins (updated)

Hyundai Engineering & Construction Co

01/04/2026 12:20

Adds comment from Orlen CEO

GDANSK/WARSAW, April 1 (Reuters) - Polish state-owned refiner Orlen PKN.WA said on Wednesday it has signed a preliminary deal with Polish state-controlled chemicals group Grupa Azoty ATTP.WA 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 ($364.23 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.

Azoty, which is struggling with losses at its core fertiliser business, has been discussing options for the polymers business with Orlen since 2024. The project has not been completed and needs restructuring amid delays and underestimated investment plans.

Launching operations will require a further investment on a scale similar to the transaction price, Orlen Chief Executive Ireneusz Fafara told a press conference.

He added that Orlen plans for the project to begin its production of industrial plastics including polypropylene next year, which he said should coincide with better petrochemical margins.

"This transaction is a catalyst for the implementation of our new strategy – focusing on the fertiliser foundation and maximizing synergies within the group," Grupa Azoty CEO Marcin Celejewski said in a statement.

Under the deal, Azoty said an agreement is also being concluded to settle a legal dispute over the project between Grupa Azoty Polyolefins and Hyundai Engineering, with Orlen acting as guarantor.

Orlen has long been seen as the natural candidate to take over and stablise the project, Erste Group analyst Cezary Bernatek wrote in a note to clients, and the transaction is broadly in line with market expectations.

"We would expect a rather neutral initial market reaction... Overall, the deal should be seen as risk clean-up rather than a new growth catalyst," he added.

Orlen shares were down 1.3% at 1112 GMT and Azoty's fell 0.7%, against 2.2% rise in the blue chip WIG20 index.

($1 = 3.7064 zlotys)

 (Reporting by Adrianna Ebert and Marek Strzelecki; Editing by Matt Scuffham and Joe Bavier)

 ((Adrianna.Ebert@thomsonreuters.com; +48 58 769 65 88;))