Wednesday, 28 October 2009

OMV to control Nova Chemicals

Businessman and woman looking at diagram mounted on frosted glass
Austrian oil and chemicals group OMV is to intervene in the strategic planning and operation of Canada's Nova Chemical, following its acquisition earlier this year by Abu Dhabi’s International Petroleum Investment Co (IPIC).

IPIC is a partner with OMV in Austria-based plastics major Borealis and also holds a direct stake in OMV. NOVA was acquired in a $2.3bn (€1.5bn) deal .

According to ICIS news “The ongoing strategic analysis of NOVA's business revealed that IPIC needed to provide a higher degree of involvement in NOVA's operative business than originally envisaged,” OMV spokeswoman Michaela Huber told ICIS news.

The European Commission this week cleared an application by IPIC and OMV to share control of NOVA. IPIC hold a 19.6% stake in OMV. Borealis is jointly controlled by IPIC (64%) and OMV (36%).

OMV has been trying hard to expand its international reach. The failed acquisition of Hungary's MOL was a recent, long running attempt. IPIC is purely an investment vehicle but has been growing its chemical empire strongly.

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