The Abu Dhabi-based Mubadala Investment Company and the Vienna-based global oil and gas services company, OMV, have announced the completion of a deal to acquire OMV on 39% of Mubadala’s stake in Borealis. The global leader in chemicals, noting that the total value of the deal amounted to $ 4.68 billion (17.1 billion dirhams).
According to a statement issued yesterday, the initial agreement was announced in March of this year, while the deal was completed within the schedule set for it after meeting all the necessary regulatory requirements.
With this, OMV’s stake in Borealis will increase to 75%, while Mubadala will maintain a 25% stake.
Under the agreement, OMV will include the results of “Borealis” in its financial statements, which last year achieved total global sales of 9.8 billion euros, while its net profit reached 872 million euros.
“This deal is in line with our mission to achieve sustainable financial returns, and it is in line with our strategy as a responsible global investment company,” said Mubadala’s CEO for the petroleum and petrochemicals.
He added: “We are fully confident that this step will achieve sustainable value for (Mubadala), as well as for (OMV) and (Borealis), and we also support (OMV) strategy to expand the chemical sector, especially in light of the expected transformation. In the global energy sector ».
Al-Kaabi continued, “This deal confirms the success of the strategic partnership between (Mubadala), (Borealis) and (OMV), which extends over more than 20 years, and also reflects the long-term outlook that Mubadala follows in investing and its ability to take The appropriate decisions at the right time in a way that achieves the highest possible value for (Mubadala) and for the owner.
An important step
For his part, Chairman and CEO of OMV, Rainer Cell, said, “This transaction is an important step in the implementation of our strategy, as it allows us to establish an integrated and sustainable business model to expand the value chain, to include chemical products of higher value. “Recycling operations, thus enhancing our ability to contribute to shaping a low carbon future.”
With the rapidly increasing global demand for monomers and polymers, OMV, thanks to the acquisition of a majority stake in Borealis, will become a leading supplier of polyolefins and basic chemicals. By merging the joint production capabilities of the two companies, OMV and Borealis will become the leading producer of ethylene and propylene in Europe, and among the top 10 polyolefin producers in the world. This acquisition represents a strategic expansion of the company’s value chain, to include high-value chemicals. It also enhances the company’s capabilities to deal flexibly with fluctuations in each stage of the value chain, which reduces the risks that OMV faces due to market fluctuations.
It is noteworthy that the company «Borealis» is headquartered in Vienna, and its operations are spread in more than 120 countries, and it employs more than 6,800 employees. The company provides its services and products to clients around the world, either directly or in cooperation with “Borouge”, a joint venture between the Abu Dhabi National Oil Company (ADNOC) and “Baystar”, a joint venture with “Total” in Texas, USA.
Mubadala Investment Company stated that OMV and Borealis will cooperate to enhance their expertise and operations in the field of the circular economy.
She added that “Borealis” initiatives in the field of plastic recycling, such as the recycling facilities “Eco Plast” (in Austria), “MTM Plastics” (in Germany), and “Project Stop” (for waste management in the ocean) The design initiative for recycling is to be a valuable addition to OMV’s technologies for the chemical recycling of spent plastics and their conversion into industrial raw materials.
OMV acquires 39% of Mubadala’s stake in Borealis, increasing its stake to 75%.
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