Borealis looks to expand with new mergers and acquisitions

Abu Dhabi: Borealis, a major provider of chemical and innovative plastic solutions majority owned by Abu Dhabi's International Petroleum Investment Company (Ipic), will be looking at mergers and acquisitions in the future as part of its expansion strategy, Borealis Chairman Khadem Al Qubaisi said Wednesday.

Improve volume

Speaking to reporters at a news conference, Al Qubaisi said: "Mergers and acquisitions activities in the future, will improve the volume."

Borealis is a joint venture between Ipic and Austria's OMV. Ipic owns 64 per cent stake in Borealis, while OMV holds 36 per cent.

Borealis Chief Executive Mark Garrett said that the company while trying to expand through olefins, polyolefins and base chemicals, will follow a more opportunistic approach, looking at opportunities Borealis can afford to pay for.

"Things which are bolt on and add value to the company," said Garrett explaining deals that Borealis may be interested in.

Al Qubaisi, who is also the managing director of Ipic, ruled out the possibility of a stake sale by Ipic in Borealis.

Happy with structure

"We are happy about the structure [of the shareholding]. We are not considering increasing or decreasing our stake,"

Al Qubaisi said along with oil, gas and hydrocarbons, petrochemicals will contribute a big chunk to Abu Dhabi's gross domestic product (GDP) in the future.