IPIC to consolidate Canada's NOVA Chemicals and Borealis – report

15 April 2011 16:52  [Source: ICIS news]

TORONTO (ICIS)--Abu Dhabi’s International Petroleum Investment Co (IPIC) plans to consolidate NOVA Chemicals and Borealis, which are both part of its investment portfolio, according to a report on Friday.

A spokesperson for Austria-based petrochemicals major Borealis told ICIS the company could not comment on the plans of its owners. Media officials at Canada’s NOVA Chemicals did not immediately respond to a request for comment.

The report by Abu Dhabi’s The National cited IPIC managing director Khadem al Qubaisi as saying IPIC would consolidate the two chemicals businesses “and bring NOVA to Abu Dhabi to do some projects… .”

The plans would likely be implemented over the next two years, al Qubaisi told the paper. Al Qubaisi is also chairman of NOVA Chemicals's board of directors and chairman of Borealis's supervisory board.

NOVA and Borealis, along with Austria’s OMV and Spain’s CEPSA, are part of IPIC.

IPIC acquired NOVA Chemicals in 2009 in for $2.3bn (€1.6bn).

Following the acquisition, Gerhard Roiss, the then-deputy CEO of Austria’s energy and petrochemicals firm OMV, became NOVA’s board chairman as OMV was taking on a role in steering NOVA.

However, last year, when al Qubaisi became NOVA chairman to succeed Roiss, who took over as OMV’s CEO, a NOVA spokesperson said NOVA would be managed as an independent affiliate within IPIC's investment portfolio.

($1 = €0.69)

For more on NOVA Chemicals and other producers visit ICIS company intelligence

By: Stefan Baumgarten
+1 713 525 2653

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