Borealis’ polyolefin plastic materials can be used in advanced packaging applications
Austria-based OMV has signed an agreement to purchase an additional 39% stake in polyolefin plastic materials supplier Borealis from Mubadala Investment for around $4.68bn.
OMV already owns 36% in Borealis. The current transaction takes OMV’s shareholding in Borealis to 75%, making it a majority owner in the plastic materials company. Upon completion of the deal, Mubadala Investment will hold a 25% stake in Borealis.
Subject to regulatory approvals, the deal is expected to be completed in the fourth quarter of this year.
Mubadala Investment Group CEO and managing director Khaldoon Al Mubarak said: “We have signed a landmark, multi-billion dollar deal, the largest single transaction in both Mubadala and OMV‘s history. It is also fully aligned with our long-term strategy as a company.”
Borealis’ polyolefin plastic materials can be used in advanced packaging, consumer product and fibre applications.
Borealis’ polyolefin plastic materials are suitable for flexible and rigid packaging applications
Borealis’ materials are used in flexible packaging applications, including lamination film, shrink and protection film, stand-up pouches and food packaging.
The materials are also suitable for rigid packaging applications such as caps and closures, bottles, thin wall and transport packaging.
Based in Vienna, Borealis employs more than 6,800 people and carries out operations in more than 120 countries.
OMV executive board chairman and CEO Rainer Seele said: “This transaction is not just another milestone in the implementation of our strategy, but the biggest transformation in OMV’s history.
“This turns the company OMV into an internationally important oil, gas and chemicals group, whose integrated business model extends from well to high-quality plastic along an extended value chain and repositions the Group for a low carbon future.”
In October 2019, Borealis and Ecoplast have opened a new and advanced plastics recycling facility in Austria to better serve the customers in the region.
The recycling facility will process plastic waste from domestic and industrial consumers into quality recyclate.