The Emergence of the Central European MNE: MOL

Abstract

The oil industry is dominated by multinational corporations that are constantly looking for growth options. In this global industry, the products are standardized and the majority of the markets are saturated, leaving companies constantly searching for growth options. The projected growth for gasoline demand indicates that the only growth markets can be found in central eastern Europe. The consolidation in these markets has already started – the 1990s witnessed many mega-mergers between multinational companies in the sector. The question still remains as to who will emerge as a major player in the central and eastern Europe region. While the big multinational companies are present in Europe, they are not strong in these growth markets. Their position is therefore challenged by the emergent eastern counterparts, such as MOL Plc. Moreover, the financial markets value growth is creating a constant pressure for companies to create value by acquisitions.