BOREALIS
Adnoc to take Mubadala's 25% stake in Austrian polymer producer / Move linked to possible Borouge IPO
 Adnoc HQ in Abu Dhabi (Photo: Adnoc) |
As part of an all-share deal, Abu Dhabi National Oil Company (Adnoc, Abu Dhabi, United Arab Emirates; www.adnoc.ae) said it is acquiring the 25% stake in Borealis (Vienna; www.borealis.com) held by Emirati sovereign wealth fund Mubadala Investment Company (Abu Dhabi; www.mubadala.com). Financial details were not disclosed.
Following the transaction, which is subject to regulatory approvals, oil, gas and petrochemicals group OMV (Vienna; www.omv.com) will continue to hold 75% of Borealis.
Related: OMV reports record figures for polyolefin producer
While Adnoc said the stake extends its international footprint in the fast-growing chemicals and petrochemicals sector and unlocks new opportunities in fields where Borealis operates, observers note that the shares were merely transferred between two state-owned entities, suggesting the move could be tied to plans for a flotation of local polyolefin maker Borouge (www.borouge.com), the 60/40 joint venture of Adnoc and Borealis respectively.
In February 2022, media reports said the JV partners were lining up banks for an initial public offering, which could potentially take place in mid-2022. Each partner could float 10% of its shares to help finance the fourth expansion stage for Borouge.
The upgrade, estimated to cost the equivalent of about EUR 6 bn, would see the addition of an ethane cracker with capacity for 1.5 mn t/y of ethylene and two 700,000 t/y polyethylene plants (see Plasteurope.com of 18.11.2021).
Following the transaction, which is subject to regulatory approvals, oil, gas and petrochemicals group OMV (Vienna; www.omv.com) will continue to hold 75% of Borealis.
Related: OMV reports record figures for polyolefin producer
While Adnoc said the stake extends its international footprint in the fast-growing chemicals and petrochemicals sector and unlocks new opportunities in fields where Borealis operates, observers note that the shares were merely transferred between two state-owned entities, suggesting the move could be tied to plans for a flotation of local polyolefin maker Borouge (www.borouge.com), the 60/40 joint venture of Adnoc and Borealis respectively.
In February 2022, media reports said the JV partners were lining up banks for an initial public offering, which could potentially take place in mid-2022. Each partner could float 10% of its shares to help finance the fourth expansion stage for Borouge.
The upgrade, estimated to cost the equivalent of about EUR 6 bn, would see the addition of an ethane cracker with capacity for 1.5 mn t/y of ethylene and two 700,000 t/y polyethylene plants (see Plasteurope.com of 18.11.2021).
Boost for PP production
The site’s fifth polypropylene plant went onstream at the end of 2021, bringing Borouge’s capacity for the material to 5 mn t/y (see Plasteurope.com of 01.03.2022). The venture reported net earnings of EUR 1.3 mn for 2021 on sales of EUR 4.6 bn.
After shedding its Borealis stake, Mubadala now only has ownership of one of the “triumvirate” of three plastics and petrochemicals groups that included Borealis, Borouge, and Nova Chemicals (Calgary; Alberta, Canada; www.novachem.com). The state-owned holding company, which also has a 24.9% stake in OMV, currently owns 100% of the Canadian supplier.
After shedding its Borealis stake, Mubadala now only has ownership of one of the “triumvirate” of three plastics and petrochemicals groups that included Borealis, Borouge, and Nova Chemicals (Calgary; Alberta, Canada; www.novachem.com). The state-owned holding company, which also has a 24.9% stake in OMV, currently owns 100% of the Canadian supplier.
11.05.2022 Plasteurope.com [250194-0]
Published on 11.05.2022
German version of this article...