Adnoc buys 25% of Austrian chemical group OMV

Wam

Abu Dhabi state oil company Adnoc has formally closed the acquisition of a 25 percent stake in Austrian energy and chemicals group OMV.

The energy giant bought the stake from UAE sovereign wealth fund Mubadala Investment Company. 

Financial details were not disclosed.

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Österreichische Beteiligungs AG, an Austrian independent holding company, holds 31 percent in OMV, with the remaining share capital in free float. 

The deal means Adnoc has increased its stake in both Borealis and Borouge. 

Borouge is listed on the Abu Dhabi Securities Exchange. 

Adnoc owned 54 percent and Borealis 36 percent before yesterday’s announcement. Retail and institutional investors hold ten percent.

Borealis was owned 75 percent by OMV, and Adnoc had the remaining 25 percent.

“Building on our 25 percent shareholding in Borealis, this transaction marks the next transformative step as we accelerate our ambitious chemicals growth strategy, unlocking significant growth and value creation opportunities for Adnoc, OMV, and their respective shareholders,” Khaled Salmeen, Adnoc’s downstream industry, marketing & trading executive director said.

Adnoc has started pushing deeper into petrochemicals as a part of a $150 billion expansion strategy and to diversify its revenues.

This week’s deal may lead to combining Adnoc-controlled Borouge with OMV-controlled Borealis in a new petrochemical holding entity worth more than $30 million.

Adnoc began negotiations about the potential creation of the new holding last July.