The transaction would be the biggest in OMV’s history/by Kudakwashe Muzoriwa
Austria’s OMV is in talks with Abu Dhabi’s Mubadala Investment Company to acquire a $4.68 billion stake in Borealis in a potentially record-breaking deal that would shift the state-controlled energy company’s focus to petrochemicals.
OMV stated that the potential transaction—which would increase OMV's current shareholding in Borealis from 36 to 75 per cent—would expand the value chain of the energy giant in the
The move follows years of effort by OMV to gain scale in oil and gas production. Rainer Seele, the Chief Executive Officer of OMV said he wanted to focus on petrochemicals in the Middle East and Asia, where consumer demand is growing for everything from packaging to mobility.
Bloomberg reported that OMV produces oil and gas in central Europe, Northern Africa, Russia, Norway, and Asia-Pacific. The company reached daily production of 500,000 barrels of oil equivalent per day and has cut production costs over the past year. Global concerns about carbon emissions have prompted Seele to say OMV would try to become more environmentally sustainable.
OMV is expected to sell upstream production assets or gas pipelines to help fund the deal, however, the company did not mention such plans in its statement. The transaction would be the biggest in OMV’s history.