Abu Dhabi National Oil Company (ADNOC) and Mubadala Investment Company have announced they will acquire 24.9 percent shares in OMV AG, a Vienna-based global energy and chemicals group.
Financial details of the transaction have not been disclosed.
Upon completion of the transaction, which is subject to closing conditions and regulatory approvals, ADNOC will own 24.9 percent of OMV, while Österreichische Beteiligungs AG (ÖBAG), an Austrian independent holding company, will hold 31.5 percent. The remaining share capital will be in free float.
In 2021, OMV ranked 330th in Fortune’s Global 500 companies and had a total revenue of 35.56 billion euros (AED138.8 billion/USD37.79 billion) and a net income of 2.804 billion euros (AED10.93 billion/USD2.98 billion). Listed on the Vienna Stock Exchange, its shares were trading at 46.87 euros when the market closed on Tuesday.
ADNOC and OMV have a long history of partnerships.
OMV and ADNOC have already work together across the value chain in many areas. In Chemicals & Materials OMV, through its subsidiary Borealis, is a shareholder in Borouge, which is operating one of the world’s largest integrated polyolefin complexes in Al Ruways.
Through its investment in OMV, who hold a 75 percent stake in Borealis, ADNOC will increase its shareholdings in both Borealis and Borouge, bolstering its footprint in the chemicals sector, enabling synergies and unlocking significant growth opportunities across its broader chemicals portfolio.
Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: “As we continue to meet the growing global demand for lower carbon energy, we are fast-tracking the delivery of our growth strategy and expanding our footprint across key strategic markets and sectors.
“This milestone transaction, alongside our 25 percent shareholding in Borealis, is testament to our focused investment in building an integrated chemicals platform to accelerate our ambitious growth strategy that will unlock significant growth opportunities across our broader chemicals portfolio, with a particular focus on creating distinctive value for Borouge and its shareholders.”
In July 2019, OMV had acquired a 15 percent stake in ADNOC Refining for a total value of USD2.43 billion. In Exploration & Production, OMV acquired a 20% interest in the offshore concession for the two SARB and Umm Lulu oil fields in April 2018, followed by the acquisition of a 5% stake in the Ghasha sour gas and condensate field concession with a term of 40 years in December 2018.
In October this year, in the presence of UAE President, Sheikh Mohamed bin Zayed Al Nahyan and Austria’s Federal Chancellor Karl Nehammer, the two companies signed a long-term agreement to explore partnership in deliveries for LNG (Liquefied Natural Gas) and support energy supply security of Austria for the winter season 2023/2024.
Khaldoon Khalifa Al Mubarak, Managing Director and Group CEO, Mubadala, added: “Mubadala has had a longstanding relationship with our Austrian partners, and we have worked together to develop a champion in the energy sector, OMV. This transaction is reflective of our strategy to monetise assets at the right valuation and at the right time.
“This (2022) has been a year of increased activity and strategic investment across Mubadala, in sectors and geographies all over the world. We will continue to partner with best-in-class entities as we diversify our investment base and expand our growth trajectory.”
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