Borealis is to become a member of international integrated gas and oil company OMV Group, it announced in a press conference yesterday (March 16).

Vienna-headquartered OMV and Mubadala Investment Company, the Abu Dhabi-based strategic investment company, signed an agreement that will give OMV a controlling stake in Borealis, one of Europe’s leading petrochemical companies. 

OMV, which currently owns a 36 per cent stake in Borealis, will acquire an additional 39 per cent from Mubadala, increasing its stake to 75 per cent. Mubadala will retain a 25 per cent interest. The closing of the transaction is expected by the end of 2020 and is subject to regulatory approvals. 

As a leading polymer producer with a focus on innovation, OMV said Borealis “is a highly profitable company which is well positioned for growth in cost advantaged locations.”

It added that with the addition of Borealis to the group, OMV is positioned to become the number one company for ethylene and propylene capacity in Europe. 

The move means OMV will extend its value chain into polymers, “immediately becoming one of the world’s leading producers”. 

Pursuant to the agreement, 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. 

Rainer Seele, Chairman of the OMV Executive Board and CEO: “This transaction is not just another milestone in the implementation of our strategy, but the biggest transformation in OMV’s history. This turns OMV into a global oil, gas and chemicals group, whose integrated business model extends from the wellhead to high-quality plastic and repositions the Group for a low carbon future.”

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17th March 2020