Austria’s OMV is in talks with Abu Dhabi’s Mubadala Investment Company to acquire a controlling stake worth $4.68 billion in Borealis.
The deal— which would increase OMV’s current shareholding in Borealis from 36% to 75%— is said to be potentially record-breaking and would shift OMV’s focus to petrochemicals.
“The potential transaction would expand the value chain of OMV in the petrochemical sector and would allow OMV to fully consolidate the resultss,” OMV said.
Borealis, through Borouge, is undertaking two large-scale projects in Abu Dhabi’s western region of Ruwais, including the development of the world’s largest mixed-feed cracker and a fifth polypropylene unit.
The planned expansion will see Borouge produce polyethylene, polypropylene, butadiene as well as benzene.
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.
The company 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.