Change in Borealis ownership structure underpins future growth
The International Petroleum Investment Company (IPIC) of Abu Dhabi and OMV Aktiengesellschaft of Austria have announced today their agreement to purchase Statoil's 50% shareholding in Borealis A/S.
As a result, the new Borealis ownership will be 65% IPIC and 35% OMV. Statoil will continue as a major long-term feedstock supplier to Borealis. Dr. Gerhard Roiss, Deputy CEO of OMV, will be the Chairman of Borealis A/S. Closing of the transaction is expected during the fourth quarter once regulatory approvals are received.
Commenting on the new ownership structure, Borealis' Chief Executive John Taylor said, "Borealis has successfully completed a major transformation of the company over the past four years. We continue to be committed to being a leading, innovative provider of plastics solutions to our customers". He added, "I am enthusiastic about this change in ownership as I believe it will provide the opportunity to further strengthen the company in its implementation of our value creation strategy launched in 2001."
IPIC's Managing Director, Mohamed Al Khaily, stated that, "IPIC's increased ownership in Borealis will further deepen the ties between Borealis and Borouge providing an even stronger foundation for continued growth in the Middle East and Asia. He added, "Our increased investment in the company is testament to the rewarding partnership we enjoy with Borealis and OMV. We are very pleased with Borouge's developments over the last three and a half years, especially with the potential of the Borstar® PE technology benefits to penetrate key differentiated growth market areas such as pipe and enhanced film applications."
From OMV, Dr. Gerhard Roiss said, "This change in ownership will enable Borealis to further develop integrated investment opportunities with its owners as well as exploring additional routes to achieve profitable growth". He emphasized, "I am particularly keen to reinforce Borealis' Research and Development capabilities as an integral part of their strategy to create and deliver value to their customers."
Statoil Chief Executive Helge Lund explained, "We are selling our interests in petrochemicals because this no longer forms part of our core business. The sale to IPIC and OMV also represents a good industrial solution for Borealis. As a responsible owner, Statoil has participated in developing Borealis industrially and financially to reach the strong position it occupies today."
John Taylor concluded, "I eagerly look forward to the continuing development of Borealis as an independent company under our new ownership structure. I would like to thank all our customers, suppliers and employees for their active involvement and support in our past successes. Together we will continue to actively pursue our vision of Shaping the Future with Plastics."