Page 16 - DMEA Week 43 2020

DMEA PETROCHEMICALS DMEA

OMV closes $4.7bn

Borealis deal

AUSTRIA AUSTRIAN oil giant OMV has closed a implementation of our strategy,” OMV CEO
$4.7bn deal to buy an extra 39% stake in pet- Rainer Seele said. “We are thus establishing
OMV will get a greatr rochemicals group Borealis from Abu Dhabi an integrated and sustainable business model
say over the flagship state investor Mubadala, it announced on extending OMV’s value chain towards higher
Ruwais petrochemicals October 29. value chemical products and recycling, thereby
project in the UAE. The transaction was first announced in repositioning the group for a lower carbon
March, serving as part of OMV’s strategy of future.”
expanding in gas and petrochemicals and mov- The deal, which OMV funded with bond
ing away from crude oil. OMV already has a 36% sales, will position OMV as the top producer of
interest in Borealis, but controlling a majority ethylene and propylene in Europe and place it
share will provide it with greater say over a key among the top 10 polyolefin producers world-
project in the UAE. wide. OMV plans to expand joint work with
Borealis’ Borouge joint venture with Abu Borealis on plastics recycling, including its con-
Dhabi National Oil Co. (ADNOC) owns the version to oil using the Austrian firm’s ReOil
Ruwais complex, poised to become the world’s technology.
largest integrated refining and petrochemicals OMV is also divesting assets elsewhere,
hub. including a 51% stake in gas grid operator Gas
Ruwais currently produces 4.5mn tonnes Connect Austria.
per year of petrochemical products, including Mubadala, a minority shareholder in OMV,
2.3mn tpy of polyethylene and 1.76mn tpy of has retained a further 25% interest in Borealis.
polypropylene. But ADNOC wants to double its “This transaction is well aligned with our
capacity by 2030, as part of the UAE’s drive to strategy as a responsible investor and we are con-
expand petrochemical exports, particularly to fident in the value this partnership will create for
China. all three companies,” Mubadala CEO Musabbeh
“This transaction is another milestone in the Al Kaabi said in a statement. ™

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