Austrian oil refiner OMV proposed a $36 billion merger with Hungarian rival MOL on Monday, after nearly doubling its stake in MOL to 18.6 percent. OMV said its request for friendly talks with MOL was a response to restructuring in the European refining industry, as the oil majors sell facilities to independent refiners and Russia seeks to expand its crude processing capacity.
"OMV regards the upcoming wave of consolidation as an opportunity for both companies to combine their strengths," OMV said in a statement. "OMV thus invites MOL to an open and constructive dialogue. OMV... is prepared and ready to do so." MOL's announcement on Friday that it intended to resume share buybacks - possibly buying back another 10 percent of its stock by year-end - now looked like a bid defence, analysts at Citigroup said in a research note.
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