Top Greek refiners Hellenic Petro-leum (Helpe) and Petrola are to merge, creating a state-controlled firm dominating three quarters of the local refinery market, Petrola said Friday in a statement to the Athens Stock Exchange.
Petrola, run by the Greek-owned Luxembourg-based Latsis business group, agreed with the Greek government to buy "around 16.65 percent" in state-controlled Helpe.
According to Greek Development minister Akis Tsohadzopoulos, Petrola will pay 326 million euros (US$381 million) for the stake.
The two parties also agreed that Helpe will absorb Petrola.
"The Greek state will retain management control in Helpe," the statement said. The transaction will be completed "as soon as possible" after shareholders' approval, the text added.
After the merger, the Latsis group will control around 25 percent of Helpe and appoint two out of the company's 13-strong management board, Tsohadzopoulos said.
Helpe is Greece's top refiner with consolidated pre-tax profit of 133.7 million euros last year. The Helpe group's core profits, defined as earnings before interest, tax, depreciation and amortization reached 286 million euros. The group also owns petrochemical operations and tank filling stations.
Helpe controls 58 percent of Greece's domestic market. It operates two refineries in Greece and one in Macedonia, three petrochemical plants in Greece. It recently expanded in Cyprus, Montenegro, Albania and Georgia.
Petrola, which controls 20 percent of the Greek market, made a pre-tax profit of 28.1 million euros last year, on 1.12-billion-euro turnover.
In February, Greece canceled the sale of a 23.5-percent stake in Helpe after year-long negotiations with a consortium comprising Latsis and Russian oil major Lukoil had collapsed.
The sale of a stake in Helpe featured featured large in Greece's declared ambition to drive down its public debt, the eurozone's second-highest, from its current level of 105.3 percent of GDP to 100.2 percent.
Helpe's trade unionists said they oppose the merger.
"Why do we buy a company we don't need? We will react. I imagine the government just wants to bail Latsis out," Helpe trade union chief Nikos Orfanos said, without saying whether staff will go on strike.
Greece's second-largest refiner Motor Oil, which controls 22 percent of the Greek oil market and is jointly owned by local Vardinoyiannis business group and Saudi oil major Aramco, criticized the move.
"It depends on the government ... if it wants privatizations or nationalizations," Motor Oil chairman Vardis Vardinoyiannis was quoted by the semi-official Athens News Agency as saying.
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced