ADNOC to Take a 24.9% Stake in OMV
In a deal announced shortly before Christmas that only attracted significant attention in the new year, Abu Dhabi National Oil Company (ADNOC) said it is acquiring a 24.9% stake in Austrian energy group OMV from Mubadala, the sovereign wealth fund of the United Arab Emirates.
Financial details of the proposed transaction, which is still subject to regulatory approval, were not disclosed. Stock market reports said the OMV stake was worth about €3.9 billion at current market prices.
With the transaction that it called the latest milestone in its strategic growth and investment journey, reinforcing its role as a primary catalyst for sustainable investment and value creation for Abu Dhabi and the UAE state, ADNOC will widen its shareholding in Vienna-based olefins and polyolefins producer Borealis and the two companies’ joint venture Borouge.
OMV currently hold a 75% stake in Borealis, a share that remained stable after an asset swap between Mubadala and ADNOC in April 2022. ADNOC’s CEO, Sultan Al Jaber, who is also the UAE’s minister of industry and advanced technology, said that adding the OMV shares will boost the company’s footprint in the chemicals sector, enable synergies and unlock significant growth opportunities across its broader chemicals portfolio, in particular at Borouge.
In an initial public offering for Borouge in June 2022, Abu Dhabi’s largest listing, ADNOC and Borealis raised $2 billion, which they planned to invest in expanding the JV.
Bloomberg analysts commenting on the latest ownership change noted that the reshuffle comes at a difficult time for the chemicals and energy sector, which is trying to wean itself off oil and gas. ADNOC’s position as the UAE’s largest oil supplier could be helpful.
Currently, the government in Vienna is said to be reviewing gas purchases and OMV’s role in supplying energy to the country via a long-term agreement with Gazprom. The country’s finance minister, Magnus Brunner, visited Abu Dhabi in December, presumably to talk about ADNOC sending liquefied natural gas (LNG) to Austria.
Author: Dede Williams, Freelance Journalist
