Abu Dhabi National Oil Company (ADNOC) will acquire 24.9% of Austrian oil and gas group OMV, it said on Wednesday, stepping up its international expansion since Russia’s invasion of Ukraine prompted energy market turmoil.
ADNOC has been flexing its muscles, taking on international oil companies and Gulf rivals in its pursuit of energy assets outside the United Arab Emirates.
The company is acquiring Abu Dhabi state fund Mubadala’s entire OMV stake in a transaction that “marks the next major milestone for ADNOC as it accelerates its ambitious domestic and international chemicals growth strategy”, ADNOC and Mubadala said in a joint statement.
Reuters had broken news of the deal earlier on Wednesday, citing sources familiar with the matter.
Mubadala’s stake in OMV is valued at about $4.1 billion, Refinitiv data shows.
The deal, which is subject to regulatory approvals, will also increase ADNOC’s holding in both European petrochemicals maker Borealis and Abu Dhabi-listed petrochemicals company Borouge.
A separate statement from state-owned Austrian holding company Osterreichische Beteiligungs AG (OBAG), which owns a 31.5% stake in OMV, said that ADNOC would become a long-term strategic partner in all areas of OMV’s business.
ADNOC last month received board approval for $150 billion of spending over 2023-2027 for its accelerated growth strategy and creation of a new division focused on low-carbon solutions and international growth.
It is also sharpening its focus on the European gas market as it rushes to replace Russian energy imports after gradual supply cuts since Western sanctions were imposed against Moscow.