Mubadala has signed an agreement with OMV over the sale of its Borealis stake for $4.68 billion . Currently, OMV holds 36 percent stake in Borealis and will further acquire a 39 percent stake from Mubadala.
OMV is a leading oil and gas company headquartered in Vienna. With the Borealis stake acquisition, OMV will become the majority holder in the company. Borealis is one of Europe’s leading petrochemical companies.It is reported that OMV plans to sell assets worth $2.3 billion by end of 2020 to finance its Borealis sake acquisition.
The deal is a part of Mubadaa’s long-term strategy. Mubadala is Abu-Dhabi-based investment company. Also, the deal will help OMV establish itself as a globally recognised oil, gas and chemicals group. The transaction is expected to close in the fourth quarter of 2020. However, it is subject to regulatory approvals.
Musabbeh Al Kaabi, CEO, Petroleum & Petrochemicals of Mubadala, told the media, “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 percent interest that we will retain, along with our existing 24.9 percent shareholding in OMV.”
Borealis has more than 6,800 employees, with operations in over 120 countries. Recently, Mubadala Petroleum increased its shareholding in Manora Field to 70 percent, media reports said, The remaining 30 percent will be held by Tap Oil, an independent oil & gas exploration and production company in Southeast Asia and Australia.