OMV to Acquire Additional 39% in Borealis for $4.68 Billion
March 12 2020 - 4:36AM
Dow Jones News
By Giulia Petroni
OMV AG said Thursday that it signed an agreement to buy an
additional 39% stake in Borealis AG from Mubadala Development
Company PJSC for $4.68 billion, bringing its total shareholding to
75%.
The Austrian energy company said the acquisition is supported by
a 2 billion-euro ($2.26 billion) divestment program until the end
of 2021 and that it expects to realize synergies of EUR700 million
until the end of 2025 due to reduced costs and tax benefits.
The company said it would cut its planned organic investments by
EUR200 million in 2020. Due to these measures, OMV said it expects
to reduce its gearing ratio excluding leases to around 30% by the
end of 2021, but it reconfirms its dividend policy.
The transaction is expected to be closed at the end of the year
and it is subject to regulatory approvals.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
March 12, 2020 04:21 ET (08:21 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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