OMV acquires majority Borealis stake with $4.68bn Mubadala deal
The transaction represents the biggest acquisition in OMV’s history and the largest single transaction ever for Mubadala
Abu Dhabi-based strategic investment company, Mubadala Investment Company (Mubadala), and Vienna-headquartered integrated oil and gas company, OMV, have inked an agreement that will give OMV a majority stake in one of Europe’s leading petrochemical companies, Borealis.
OMV, which currently owns a 36% stake in Borealis, will acquire an additional 39% stake from Mubadala, making it the majority shareholder in the company.
The overall transaction value amounts to $4.68bn, representing the biggest acquisition in OMV’s history and the largest single transaction ever for Mubadala.
Following completion, OMV will hold a 75% interest in Borealis and Mubadala will retain a 25% interest. The transaction is expected to close in Q4 2020, and is subject to regulatory approvals.
Commenting on the deal, the managing director and group chief executive officer of Mubadala Investment Company (MIC), Khaldoon Al Mubarak, said: “Today marks the culmination of several months of discussions between OMV and Mubadala. 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.”
Hear from Musabbeh Al Kaabi, CEO of our Petroleum & Petrochemicals Platform, about @OMV’s acquisition from Mubadala of an additional 39% stake in @BorealisGroup for $4.68 bn. pic.twitter.com/bs5JLR503J— Mubadala (@Mubadala) March 15, 2020
Sharing his reaction to the agreement, the CEO of Petroleum & Petrochemicals at Mubadala, Musabbeh Al Kaabi, 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% interest that we will retain, along with our existing 24.9% 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.”
The chairman of the OMV Executive Board and CEO of the firm, Rainer Seele, said: “This transaction is not just another milestone in the implementation of our strategy, but the biggest transformation in OMV’s history.”
Seele added: “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™.