ADNOC buys Mubadala’s 25% stake in Borealis

Abu Dhabi National Oil Company (ADNOC) announced on Friday it will buy out Mubadala Investment Company’s remaining 25 percent stake in Austrian chemicals company Borealis, extending the international footprint of the UAE’s state-owned oil and gas producer in the fast-growing chemicals and petrochemical sector.

The transaction is subject to customary closing conditions and regulatory approvals, and at the end of it Borealis will be owned 25 percent by ADNOC and 75 percent by OMV, the company said. No further financial details of the transaction were disclosed by the companies.

The investment in Borealis – a leading global provider of advanced and circular polyolefin solutions and a European market leader in base chemicals, fertilisers and mechanical recycling of plastics – will unlock new opportunities in key markets in Europe and the Americas, ADNOC said.

“Globally, the chemicals and petrochemical sector is poised for significant consumer-led growth in the decades ahead. ADNOC is therefore delighted to be making this strategic investment for a 25 percent stake in Borealis, a world-leading petrochemicals company, with whom we have already collaborated in a close and trusted partnership over two decades through our jointly held Abu Dhabi-based polyolefins company Borouge,” Dr Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, said in a statement.

“Alongside OMV, ADNOC will be a co-shareholder in Borealis, with this investment giving further impetus to our local and international petrochemical and industrial growth programme and accelerating our transformation into an integrated and global energy player,” he added.

In October 2020, Mubadala sold a 39 percent shareholding in Borealis to OMV in a $4.68 billion deal, thereby lowering its stake to 25 percent.

“We have partnered with OMV and ADNOC for two decades to build Borealis into a global champion. Throughout this time, we have been proud of the company’s growth, innovation and continuing success in sustainability. Now the time is right for OMV and ADNOC to take this partnership to the next level capitalising on synergies with the wider ADNOC portfolio,” Khaldoon Khalifa Al Mubarak, Managing Director and Group CEO at Mubadala, said in a statement.