Polish part state-owned PKN Orlen has completed the purchase of a Lithuanian oil refinery from bankrupt former Russian oil goliath Yukos.
According to reports, PKN paid $1.49 billion for the majority share in the refinery, making the deal the largest in Lithuanian business history. For the $1.5 billion price tag, the Polish outfit has secured the 53.7% stake previously held by the now crippled Yukos.
Reports say that PKN Orlen will add the Lithuanian government’s 30% share of the refinery before the week is out for a price approaching $852 million.
The acquired Mazeikiu Nafta facility is the only refinery in the Baltic region and is currently enjoying record incomes. However, the plant has been cut off from Russia oil supplies since the summer, which has led the company running the facility to dramatically half its profit forecast for 2006.