UAE’s Mubadala sells majority stake in Borealis for US$4.68bn

BOREALIS A18 1Mubadala Investment Company, the Abu Dhabi-based strategic investment company, and OMV, an international integrated oil and gas company headquartered in Vienna, have signed an agreement that will give OMV a majority stake in Borealis, one of Europe’s leading petrochemical companies

OMV, which currently owns a 36 per cent stake in Borealis, will acquire an additional 39 per cent from Mubadala.

The overall transaction value amounts to US$4.68bn. It represents the biggest acquisition in OMV’s history and the largest single transaction ever for Mubadala.

Following completion, OMV will hold a 75 per cent interest in Borealis and Mubadala will retain a 25 per cent interest. The transaction is expected to close in Q4 2020 and is subject to regulatory approvals.

Khaldoon Al Mubarak, managing director and Group CEO, Mubadala Investment Company, said, “We have signed a landmark, multi-billion dollar deal, the largest single transaction in both Mubadala and OMV‘s history. It is also fully aligned with our long-term strategy as a company.”

Musabbeh Al Kaabi, CEO, petroleum and petrochemicals, Mubadala, said, “We remain very confident in Borealis as a leading company in its sector. We will continue to hold a significant interest in the company, through the direct 25 per cent interest that we will retain, along with our existing 24.9 per cent shareholding in OMV. As a significant shareholder in OMV, we recognise the strong strategic fit and the complementary nature of Borealis’s business in expanding its downstream position.”

Rainer Seele, chairman of the OMV executive board and CEO, commented, “This turns the company OMV into an internationally important oil, gas and chemicals group, whose integrated business model extends from well to high-quality plastic along an extended value chain and repositions the Group for a low carbon future.”

With its head office in Vienna, Austria, Borealis currently has more than 6,800 employees and operates in over 120 countries. The company provides services and products to customers globally, both directly and in collaboration with Borouge, a joint venture with the Abu Dhabi National Oil Company (ADNOC) and with Baystar, a joint venture with Total in Texas, USA.

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