Dubai: ADNOC is picking up a 25 per cent stake in Borealis AG, one of Europe’s biggest petrochemical companies. The stake is currently held by and its Abu Dhabi counterpart Mubadala Investment Company.
Borealis will be owned 25 per cent by ADNOC and 75 per cent by OMV, the Austrian multinational listed on the Vienna Stock Exchange. Borealis is a leading global provider of advanced and circular polyolefin solutions and a European market leader in base chemicals, fertilizers and mechanical recycling of plastics.
“Globally, the chemicals and petrochemical sector is poised for significant consumer-led growth in the decades ahead," said Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO. "ADNOC is delighted to be making this strategic investment 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.
"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 program and accelerating our transformation into an integrated and global energy player.”
This transaction accelerates the Abu Dhabi energy company's delivery of its downstream and industrial growth programme.
Adding downstream capabilities
ADNOC is adding to its petrochemicals assets, building on its refining and petrochemicals facilities in Al Ruwais Industrial City. More recently, it got off to a major expansion drive, including the Borouge 4 complex and the TA’ZIZ Industrial Chemicals Zone in Ruwais.
“We partnered with OMV and ADNOC for two decades to build Borealis into a global champion," said Khaldoon Khalifa Al Mubarak, Managing Director and Group CEO of Mubadala. "Throughout this time, we have been proud of the company’s growth, innovation and continuing success in sustainability. The time is right for OMV and ADNOC to take this partnership to the next level capitalizing on synergies with the wider ADNOC portfolio.”
- Borealis is a leading global provider of polyolefin solutions and a European market leader in base chemicals, fertilizers and mechanical recycling of plastics.
- OMV is an integrated oil, gas and petrochemical company.