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Acron Group to Challenge Illegal Decision by Polish Ministry of Economic Development and Technology to Expropriate Stake in Grupa Azoty

Acron believes that the temporary compulsory administration imposed by the Polish Ministry of Economic Development and Technology on its three subsidiaries with a view to transfer ownership of shares held by them in Polish Grupa Azoty, is a gross violation of both international and national law. Acron Group companies intend to challenge these illegal actions in Polish courts, the European Court of Justice, and through international arbitration.

Acron Group has held shares in Grupa Azoty since 2012, and up to date has not been actively involved in the company management, remaining a portfolio investor and operating strictly within the legal framework. In our view, the actions of the Polish authorities are unmotivated, unjust and illegal expropriation, or simply a robbery.

It is noteworthy that Radosław Kwaśnicki appointed as the temporary administrator, is a member of the Supervisory Board (Board of Directors) of Orlen Group’s subsidiary, and held a similar position in PKN Orlen S.A. in 2014-2019. Therefore, the appointed administrator has a potential conflict of interest because Orlen is also a fertiliser producer in direct competition with Grupa Azoty and Acron Group on certain markets, and has recently announced its intention to acquire Grupa Azoty Puławy, a subsidiary of Grupa Azoty.

Acron Group holds a 19.82% stake in Polish chemical producer Grupa Azoty. On 11 July 2023, the Polish Ministry of Economic Development and Technology announced the compulsory administration for this equity stake in order to enable further sale and reregistration of the securities.