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Mubadala sells 39% stake in Borealis to OMV for $4.68 bn

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The company currently holds a 25 percent stake in Borealis and the stake sale is in line with all regulatory requirements

Abu Dhabi-based strategic investment company Mubadala Investment Company sold 39 percent of its stake in chemical company Borealis for $4.8 billion to Vienna-based oil and gas company OMV, media reports said.

After the deal, Mubadala owns a 25 percent stake in Borealis, while OMV owns the remaining 75 percent.The deal was agreed upon earlier this year and is completed on the basis of the timeline,  in accordance with all regulatory requirements.

Musabbeh Al Kaabi, chief executive at Petroleum and Petrochemicals, Mubadala Investment Company told the media, “We are confident in the value this partnership will create for all three companies. Both OMV and Borealis are champions of the Mubadala portfolio, and this decision is consistent with our asset management model and our commitment to partner with like-minded players. We are aligned with OMV’s strategy to expand their value chain and support their growth in the chemicals space globally.”

He further said that the transaction is well aligned with the company’s strategy as a responsible investor. Last year, Borealis generated sales of €9.8 billion and recorded a net profit of €872 million. OMV is entitled to all dividends related to the additional shares in Borealis distributed after December 31, 2019.

Rainer Seele, chairman of the executive board and chief executive at OMV, told the media, “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.”

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