The transaction would be the biggest in OMV’s history/
by Kudakwashe MuzoriwaAustria’s OMV is in talks with Abu Dhabi’s Mubadala Investment Company to acquire a $4.68 billion stake in Borealis in a potentially record-breaking deal that would shift the state-controlled energy company’s focus to petrochemicals.
OMV stated that the potential transaction—which would increase OMV's current shareholding in Borealis from 36 to 75 per cent—would expand the value chain of the energy giant in the
The move follows years of effort by OMV to gain scale in oil and gas production. Rainer Seele, the Chief Executive Officer of OMV said he wanted to focus on petrochemicals in the Middle East and Asia, where consumer demand is growing for everything from packaging to mobility.
Bloomberg reported that OMV produces oil and gas in central Europe, Northern Africa, Russia, Norway, and Asia-Pacific. The company reached daily production of 500,000 barrels of oil equivalent per day and has cut production costs over the past year. Global concerns about carbon emissions have prompted Seele to say OMV would try to become more environmentally sustainable.
OMV is expected to sell upstream production assets or gas pipelines to help fund the deal, however, the company did not mention such plans in its statement. The transaction would be the biggest in OMV’s history.
MOST READ
INVESTMENT
India seizes Yes Bank, limits withdrawalsINVESTMENT
ING Groep plans to sell its Turkish unitINVESTMENT
SABB seeks to boost corporate lendingINVESTMENT
UBS launches new private client programINVESTMENT
Egypt plans to resume IPOs of parastatalsINVESTMENT
HSBC considering exiting from TurkeyINVESTMENT
Abu Dhabi’s Group 42 acquires BayanatINVESTMENT
Amanat considers stake in VPS HealthcareINVESTMENT
Goldman Sachs 1MDB case moved to higher courtINVESTMENT
Mashreq, Zoho partner to enhance SME bankingINVESTMENT
AA- ratings affirmed for ECI, stable outlookINVESTMENT
KIZAD, ECI partner to support UAE businessesINVESTMENT
Fiat Chrysler, PSA explore a potential mergerINVESTMENT
UBS investment bank job cuts reach EuropeINVESTMENT
Saudi Aramco plans to complete IPO this year
CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.
Loading More post
