ADNOC to Buy 24.9 Percent Stake in Austria's OMV
Abu Dhabi State-fundfd Mubadala Investment Company has agreed to sell a 24.9 percent stake in Austrian oil and gas business OMV to Abu Dhabi National Oil Company (ADNOC).
Following the transaction's completion, ADNOC will increase its ownership stakes in both the Abu Dhabi-listed petrochemicals company Borouge, and the European petrochemical manufacturer Borealis.
The value of Mubadala's ownership in OMV is estimated to be roughly USD 4.1 billion by Refinitiv.
The deal, which still needs regulatory clearance, marks the next significant milestone for ADNOC as it accelerates its ambitious growth goal for chemicals in the domestic and global markets and also aligns with Mubadala's long-term investment strategy.
The deal was made owing to Mubadala Petroleum change of name to Mubadala Energy in September to focus on emerging energy markets including carbon capture and blue hydrogen. Moreover, Abu Dhabi's ADNOC trying to expand its influence abroad through mergers and acquisitions also contributed to the deal maker part.
In April of this year, ADNOC and Mubadala reached an agreement to buy a 25% interest each in Borealis, a European producer of petrochemicals that is 75% controlled by OMV.
This large deal demonstrates the careful investment they have made in creating an integrated chemicals platform to support their ambitious growth goal and to open new growth prospects for their whole chemical portfolio.
Sultan al-Jaber, the company's chief executive, played a key role in developing the transformation strategy that the business started more than four years ago. This strategy included monetising assets like the listing of Borouge, a manufacturer of fertilisers and clean ammonia products.
About the Company ADNOC
One of the top energy producers in the world and a key driver of Abu Dhabi's economy's expansion and diversification is Abu Dhabi National Oil Company (ADNOC). They operate across the hydrocarbon value chain, with a daily production capacity of more than 4 million barrels of oil and over 11.5 billion cubic feet of natural gas. They have a network of entirely integrated companies engaged in the exploration, production, storage, refining, trading, and creation of a wide variety of petrochemical goods.
ADNOC, established in 1971, has been in charge of utilising the UAE's energy resources by satisfying the needs of a dynamic energy market.
About the Company OMV
OMV is a worldwide integrated oil, gas, and petrochemical business with its headquarters in Vienna, Austria. The business is traded on the Vienna Stock Exchange. OMV Group was placed as the 413rd-largest public business in the world in the 2021 Forbes Global 2000. Along with petrochemicals and plastic recycling, it is involved in the upstream and downstream oil and gas industries.
As per Procurement Resources, Abu Dhabi State-fund Mubadala Investment Company has decided to give Abu Dhabi National Oil Company a 24.9 percent share in the Austrian oil and gas company OMV (ADNOC). After the purchase is complete, ADNOC will boost its ownership shares in both the European petrochemical producer Borealis and the Abu Dhabi-listed petrochemicals business borouge.
According to Refinitiv, Mubadala's ownership in OMV is worth approximately USD 4.1 billion. The deal, which still needs regulatory authorisation, marks the next key milestone for ADNOC as it augments its ambitious expansion ambition for chemicals in the domestic and worldwide markets and aligns with Mubadala's long-term investment strategy.
The agreement was reached after Mubadala Petroleum changed its name to Mubadala Energy in September in order to concentrate on developing energy markets, such as carbon capture and blue hydrogen, as well as Abu Dhabi's ADNOC's efforts to broaden its influence internationally through mergers and acquisitions.