Abu Dhabi-based ADNOC Acquires OMV Shares from Sovereign Wealth Fund Mubadala

OrganizationsOther ♦ Published: December 23, 2022; 21:16 ♦ (Vindobona)

There is a change in the ownership structure of the Austrian oil and gas group OMV. Long-time core shareholder Mubadala, Abu Dhabi's sovereign wealth fund, sells its 24.9 percent stake in OMV to Abu Dhabi National Oil Company (ADNOC), also a state-owned company. The state holding company ÖBAG announced that it had been informed of the change in ownership.

There will be a change in the ownership structure at OMV. / Picture: © Wikimedia Commons / DanielZanetti / CC BY 3.0 (https://creativecommons.org/licenses/by/3.0)

With a 24.9 percent stake in OMV, ADNOC will thus become the second-largest shareholder behind ÖBAG, which holds 31.5 percent. "Should the regulatory approvals be granted, Adnoc would be a long-term oriented, strategic partner for all OMV business areas," ÖBAG wrote in its statement. ÖBAG's goal remains to ensure the long-term increase in OMV's value and to protect the interests of the site, it added.

OMV itself did not want to comment on the matter when asked by APA. The reason was that it concerned the ownership structure. For the time being, as reported by APA, there was no statement from the Ministry of Finance at short notice.

Mubadala CEO Khaldoon Khalifa Al Mubarak said, "Mubadala has a long-standing relationship with our Austrian partners and we have worked together to develop a champion in the energy sector, OMV. This transaction reflects our strategy to monetize assets at the right valuation and at the right time."

This step will also strengthen ADNOC, one of the world's largest oil producers, in the chemicals sector, he said. Just this spring, ADNOC and Mubadala agreed that ADNOC would acquire the 25 percent stake in the petrochemicals group Borealis, in which OMV holds 75 percent.

"The transaction represents the next important milestone for ADNOC to accelerate its ambitious growth strategy in the chemicals sector, both domestically and internationally, and is in line with Mubadala's long-term investment strategy," the company said.

ADNOC, one of the world's largest oil producers, expects its investment to increase and accelerate its presence in the chemicals sector and create synergies in its chemicals portfolio.

The company's "targeted investment" is about "building an integrated chemicals platform to accelerate its growth strategy," according to Sultan Al Jaber, ADNOC chief executive and UAE minister of industry and advanced technology. A statement made several references to ADNOC's stakes in Borealis and Borouge being boosted by the OMV investment.

"Building on the strong bilateral relationship between the UAE and Austria and our long-standing partnership with OMV, ADNOC is pleased to acquire a 24.9 percent stake in OMV," Al Jaber said. The statement also said, "The transaction cements strong bilateral relations between the UAE and Austria and creates value for all stakeholders."