Mubadala and OMV finalize the $ 4.68 billion Borealis deal

Mubadala and OMV finalize the $ 4.68 billion Borealis deal
Mubadala and OMV finalize the $ 4.68 billion Borealis deal
(MENAFN – Al-Bayan) Source: Date: October 29, 2020 Mubadala Investment, a strategic investment company, and OMV, the international company specializing in integrated oil and gas services, headquartered in Vienna, announced the completion of a deal to acquire OMV on 39% of Mubadala’s stake in Borealis, the global leader in Chemicals, valued at $ 4.68 billion.

The initial agreement was announced in March of this year, and the deal was completed within the timetable set for it after all the necessary regulatory requirements were met. Thus, OMV’s stake in Borealis would increase to 75%, while Mubadala would retain a 25% stake.

Under the agreement, OMV will include the results of “Borealis” in its financial statements. In 2019, “Borealis” achieved total global sales of 9.8 billion euros, with a net profit of 872 million euros.

Musabeh Al Kaabi, CEO of the Petroleum and Petrochemicals Sector at Mubadala, said: “This transaction is in line with our mission to achieve sustainable financial returns, and it also aligns with our strategy as a responsible global investment company. From “OMV” and “Borealis”, we also support OMV’s strategy to expand the chemical sector, especially in light of the expected transformation in the global energy sector.

Al Kaabi added, “This transaction confirms the success of the strategic partnership between Mubadala, Borealis and OMV, which spans more than 20 years, and reflects the long-term outlook pursued by Mubadala in investment and its ability to make appropriate decisions in The right time in a way that achieves the highest possible value for the swap and for the owner. ”

Rainer Sell, Chairman and CEO of OMV, 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 higher value chemical products and re-operations. Recycling, thus enhancing our ability to contribute to shaping a low-carbon future. ”

It is worth noting that Borealis is headquartered in Vienna with operations in more than 120 countries and 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.

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 provider of polyolefins and basic chemicals.

By merging the two companies’ joint production capabilities, OMV and Borealis will become the number one 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 the fluctuations in each stage of the value chain, thus reducing the risks that OMV faces due to market fluctuations.

In addition, OMV and Borealis will collaborate to enhance their expertise and operations in the area of ​​the circular economy.

Borealis’ plastic recycling initiatives, such as the recycling facilities Echo Plast (in Austria), MTM Plastics (in Germany), Project Stop (for ocean waste management) and the design initiative for recycling Recycling is to be a valuable addition to OMV technologies for the chemical recycling of spent plastics and their conversion into industrial raw materials.

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Key words:

  • OMV company,
  • Mubadala Investment Company,
  • Strategic partnership,
  • Deal

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