Borealis AG and Nova Chemicals Corporation announced that they have reached an agreement for Borealis to buy Nova Chemicals’ 50 % ownership interest in Novealis Holdings LLC.
Formed in 2018, Novealis is the joint venture between affiliates of Borealis and Nova Chemicals, which subsequently formed a 50/50 joint venture with an affiliate of Total S.A. to launch Bayport Polymers LLC (Baystar) in Houston, TX, USA. Closing of the acquisition is subject to customary regulatory approvals and other conditions but is not subject to any financing condition. The parties expect the transaction to close in the first half of 2020.
Borealis is a supplier in the fields of polyolefins, base chemicals and fertilisers. With its head office in Vienna, Austria, the company currently has more than 6,800 employees and operates in over 120 countries. Borealis generated EUR 8.3 billion in sales revenue and a net profit of EUR 906 million in 2018. Mubadala, through its holding company, owns 64 % of the company, with the remaining 36 % belongs to Austria-based OMV, an integrated, international oil and gas company. Nova Chemicals develops and manufactures chemicals and plastic resins. Headquartered in Calgary, Alberta, Canada, the company is wholly-owned by Mubadala Investment Company of the Emirate of Abu Dhabi, UAE.