Abu Dhabi's Mubadala, IPIC merger formalized to create investment powerhouse

Published January 22nd, 2017 - 12:28 GMT
Mubadala has interests in aerospace, oil and gas, semiconductors, information and communications technologies, utilities, capital investments, real estate and infrastructure.  (Mubadala)
Mubadala has interests in aerospace, oil and gas, semiconductors, information and communications technologies, utilities, capital investments, real estate and infrastructure. (Mubadala)

President His Highness Shaikh Khalifa Bin Zayed Al Nahyan, in his capacity as Ruler of Abu Dhabi, issued a law creating the Mubadala Investment Company, comprising both the International Petroleum Investment Company (Ipic) and Mubadala Development Company and their respective assets.

This law issued yesterday formalises the June 29 announcement that Ipic and Mubadala would merge, a strategic decision intended to create an international investment powerhouse for Abu Dhabi. The combined total assets would be $125 billion (Dh458.75 billion).

A statement on WAM and Mubadala said merging the two companies brings together two of the emirate’s most significant investment companies into one global investment powerhouse. “The scale, balanced portfolio and expertise of the combined entity will bring commercial opportunities across more strategic sectors all over the world, underpinning the emirate’s long-term economic diversification,” the statement said.

His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, would be Chairman of the Board of the merged companies. Shaikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, was named Vice-Chairman.

The Chief Executive Officer of Mubadala Development Company, Khaldoon Khalifa Al Mubarak, will be the managing director and CEO of the new merged firm. Minister of energy Suhail Al Mazroui will be the board member.

The new company will be specialised in areas of holding, development, construction, financing, operation and investment in various sectors.

The operations of the two companies are spread across the globe including in Europe, Canada, the US and Asia.

Ipic has investments in more than 18 leading companies across the hydrocarbon value chain, including exploration and production, shipping and pipelines, downstream petrochemicals, power and utilities as well as industrial services. It has investments in OMV, Parco, the Arab Petroleum Pipelines Company, Borealis, Cepsa, Comso oIl, Emirates LNG, Oasis International Power.

Ipic’s capital investment arm Aabar Investment has a wide range of portfolio including in automotive, banking, construction, aviation and sports sectors including in Tesla motors, Falcon private bank, Unicredit, Arabtec holding, Virgin Galactic etc.

Mubadala has interests in aerospace, oil and gas, semiconductors, information and communications technologies, utilities, capital investments, real estate and infrastructure with investments in Piaggio aerospace, SR Technics, Strata, Global Foundries, Tatweer Petroleum, Dolphin Energy, The Carlyle Group, Aldar, Abu Dhabi Terminals among others.

By Fareed Rahman
 

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