Grupa Azoty to Sell Polyolefins Business to Orlen

Grupa Azoty and Orlen have agreed to continue working on the terms of a potential transaction whereby Orlen (or another entity designated by Orlen) would acquire all or part of Grupa Azoty’s current stake in Grupa Azoty Polyolefins, or otherwise invest.

Negotiations on transaction terms and analysis of the potential transaction, including due diligence, are expected to be completed by March 31, 2025, the companies said.

Adam Leszkiewicz, Chairman of the Management Board of Grupa Azoty, said: “Since December, we have been closely examining potential solutions for the future of Grupa Azoty Polyolefins, based on the signed cooperation agreement and the previous letter of intent. As a result, we can now clearly confirm the direction we have chosen, which is to sell all or part of Grupa Azoty’s shares in Polyolefins. At this stage, we will start due diligence and seek to negotiate the terms of a potential transaction.”

“At Grupa Azoty, we believe that this cooperation can bring mutual benefits. From our perspective, a potential transaction is one of the key elements of our ongoing recovery plan, under which we are developing a new business model for the Group,” added Leszkiewicz.

In September 2024, Orlen and Grupa Azoty announced negotiations for a strategic analysis of potential transactions in the polymers sector.