OMV to Divest Business in Slovenia, Borealis Nitrogen Unit

By Giulia Petroni

OMV AG said Thursday that it would proceed with a second round of divestments, including its business in Slovenia and the nitrogen unit of chemicals company Borealis.

The Austrian oil-and-gas company said its 2 billion euros ($2.40 billion) disposal program is on track and the first package of divestments will lead to a deleveraging of more than EUR1 billion in 2021.

The first tranche included the sale of a 51% stake in gas logistics subsidiary Gas Connect Austria, the sale of the OMV filling station business in Germany and the sale of the upstream business in Kazakhstan. The transactions are expected to close this year.

OMV said it will announce a third round of divestments later this year. The aim is to reduce its gearing --the ratio of net debt to the total of net debt and equity-- excluding leases to around 30% by the end of the year.

Borealis said separately that it will focus on its core activities in polyolefins and base chemicals. The sale of the nitrogen business will include fertilizer, technical nitrogen and melamine products but not its share in fertilizer sites in the Netherlands and Belgium.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

February 04, 2021 02:37 ET (07:37 GMT)

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