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OMV and Mubadala complete Borealis transaction

Christian Fernsby |
Mubadala Investment Company and OMV have completed the transaction for OMV to acquire an additional 39 percent stake in Borealis, a leading, global chemical company, from Mubadala.

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Topics: OMV    MUBADALA   

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.

OMV is entitled to all dividends in relation to the additional shares in Borealis distributed after December 31, 2019. OMV will fully consolidate the results of Borealis in its financial statements. In 2019, Borealis generated worldwide total sales of EUR 9.8 bn and a net profit of EUR 872 mn.

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.

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. 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.

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