OMV, the international integrated oil and gas company based in Vienna, said it has completed the transaction with Abu Dhabi-based Mubadala Investment Company for acquisition of an additional 39 per cent stake in top global chemical company Borealis.
Following the initial agreement announced in March this year, the transaction was completed in line with the expected timeline and in accordance with all the regulatory requirements.
OMV now holds a 75 percent interest in Borealis and Mubadala retains a 25 percent interest in the company.
Following this transaction, OMV will be entitled to all dividends in relation to the additional shares in Borealis distributed after December 31, 2019. It will fully consolidate the results of Borealis in its financial statements.
In 2019, Borealis generated worldwide total sales of euro 9.8 billion and a net profit of euro 872 million.
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. Both OMV and Borealis are champions of the Mubadala portfolio, and this decision is consistent with our asset management model and our commitment to our partners."
"We are aligned with OMV’s strategy to expand their value chain and support their growth in the chemicals space globally," he noted.
Rainer Seele, Chairman of the OMV Executive Board and CEO, pointed out that this transaction was another milestone in the implementation of its 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," he stated.
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, US.
The global demand for monomers and polymers is growing rapidly. Obtaining a controlling majority in Borealis makes OMV a leading provider of polyolefins and base chemicals.
The joint production capacities make OMV and Borealis the number 1 producer of ethylene and propylene in Europe and one of the top 10 polyolefin producers worldwide. The acquisition is a strategic extension of OMV’s value chain into high value chemicals.
This provides a natural hedge against the cyclicality of each value chain step with respect to both volumes and market spreads, de-risking OMV’s exposure to volatile markets.
In addition, OMV and Borealis will jointly expand their know-how and activities in the field of circular economy, said the statement.
Borealis’ activities in plastic recycling, such as recycling plants EcoPlast (Austria) and mtm plastics (Germany), Project STOP (Ocean Waste) and the Design For Recycling, DFR, initiative are a perfect addition to OMV’s ReOil technology for chemical recycling of post-consumer-plastic to synthetic crude, it added.-TradeArabia News Service