Mubadala Investment Company, the Abu Dhabi-based strategic investment company, on Thursday completed a deal to sell an additional 39 percent stake in Borealis to OMV, an oil and gas company headquartered in Vienna.
OMV now holds a 75 percent interest in Borealis and Mubadala retains a 25 percent interest in the global chemical company.
Borealis stake deal is biggest acquisition in OMV’s history and the largest transaction ever for Mubadala
The transaction value amounts to $4.68 billion and represents the biggest acquisition in OMV’s history and the largest transaction ever for Mubadala.
Under the deal, OMV is entitled to all dividends in relation to the additional shares in Borealis distributed after December 31, 2019. In 2019, Borealis generated worldwide total sales of 9.8 billion euros and a net profit of 872 million euros.
Musabbeh Al Kaabi, CEO, Petroleum & Petrochemicals, Mubadala Investment Company, said: “This transaction is well aligned with our strategy as a responsible investor and we are confident in the value this partnership will create for all three companies.”
Rainer Seele, chairman and CEO of OMV, added: “This transaction is another milestone in the implementation of our strategy. We are thus establishing an integrated and sustainable business model extending OMV’s value chain towards higher value chemical products and recycling, thereby repositioning the Group for a lower carbon future.”
Mubadala says its investment will translate into a 1.40% equity stake in Reliance Retail Ventures Limited
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, US.
The deal comes as the global demand for monomers and polymers is growing rapidly. The joint production capacities make OMV and Borealis the number one producer of ethylene and propylene in Europe and one of the top 10 polyolefin producers worldwide.