IPIC returns 70% stake in chem engineer Ferrostaal to MAN

28 November 2011 16:56  [Source: ICIS news]

LONDON (ICIS)--Abu Dhabi’s IPIC will sell back its 70% stake in chemical engineering firm Ferrostaal for €350m ($467m) to Germany-based industrial firm MAN as the two groups agreed to settle a long-running dispute, they said on Monday.

At the same time, MAN plans to transfer all of Ferrostaal to MPC Group, a Hamburg-based investment and commodities firm. MAN expect to received up to €160m from MPC for Ferrostaal.

IPIC, which owns Canada’s NOVA Chemicals and controls a number of other petrochemicals producers, bought the 70% stake in Ferrostaal from MAN in 2008.

However, IPIC subsequently sought to back out of the deal because of a corruption scandal at Ferrostaal that saw two of the company’s managers charged with alleged bribery. The matter pre-dated IPIC’s acquisition of the stake.

“This settlement is the outcome of very good cooperation between both shareholders, and enables IPIC and MAN to finally put their differences aside,” said IPIC managing director Khadem Al Qubaisi.

MAN's settlement with IPIC and the planned transfert of Ferrostaal to MPC are both subject to regulatory approvals.

Essen-based Ferrostaal builds chemical, fertilizer and other industrial plants.

($1 = €0.75)

By: Stefan Baumgarten
+1 713 525 2653

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