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With 39% share purchase from Mubadala, OMV to acquire majority stake in Borealis for US$4.68 billion in largest single transaction ever for both companies

  • Mubadala set to retain a 25% interest in Borealis
  • Al Mubarak calls deal ‘landmark’ for both companies
12 March 2020
With 39% share purchase from Mubadala, OMV to acquire majority stake in Borealis for US$4.68 billion in largest transaction ever for both companies

Abu Dhabi, United Arab Emirates:
Mubadala Investment Company, the Abu Dhabi-based strategic investment company, and OMV, the international integrated oil and gas company headquartered in Vienna, have today 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% stake in Borealis, will acquire an additional 39% from Mubadala.

The overall transaction value amounts to US$4.68 billion. It represents 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.

Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company, 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.”

Musabbeh Al Kaabi, CEO, Petroleum & Petrochemicals, Mubadala: “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 recognize the strong strategic fit and the complementary nature of Borealis’s business in expanding its downstream position.”

Al Kaabi added: “We are pleased to have reached agreement with our longstanding partner, OMV. For Mubadala, the decision is consistent with our strategy of actively managing our portfolio, and taking opportunities to realize value when conditions are right.”

Rainer Seele, Chairman of the OMV Executive Board and CEO: “This transaction is not just another milestone in the implementation of our strategy, but the biggest transformation in OMV’s history. 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.