VIENNA (Reuters) - Austrian oil company OMV is preparing to increase its stake in plastics maker Borealis to 75% in a deal worth $4.7 billion, OMV said on Friday.
OMV already owns 36% of the company, with the remainder held by Abu Dhabi state investor Mubadala [MUDEV.UL].
“OMV and Mubadala are currently negotiating the acquisition of an additional 39% share in Borealis AG by OMV for a purchase price of $4.68 billion,” OMV said in a statement, confirming a report by Austrian newspaper Der Standard.
The newspaper said the transaction is on the agenda for a supervisory board meeting on Wednesday that would have to sign off the purchase, without identifying sources.
“The supervisory board of OMV has not finally deliberated and decided on the potential transaction. It is expected that a respective decision is made as soon as possible,” OMV said.
The Austrian company has been shifting the focus of its refinery division to aviation fuel and petrochemicals, banking on an increasing appetite for air travel and plastic products. It has also made expanding in the Middle East a priority.
OMV is also planning some asset sales but it has not yet decided what to sell, Der Standard said. OMV’s statement did not address that issue, and an OMV spokesman declined to comment.
The company said the deal would also have to be approved by Mubadala.
Reporting by Francois Murphy and Kirsti Knolle; editing by David Goodman, Barbara Lewis and Jan Harvey