Mubadala Investment Company signed a deal with Austria's oil and gas group OMV to sell a 39 per cent stake in plastics maker Borealis for a sum of $4.68 billion (Dh17.18bn). Upon completion, OMV will hold a 75 per cent interest in Borealis while Mubadala will retain a 25 per cent stake, the Abu Dhabi-based investment company said in a statement on Thursday. Mubadala owns 25 per cent of OMV and, prior to the latest deal, owned 64 per cent of Borealis in a 50:50 joint venture with Adnoc through Borouge, the country's largest petrochemicals company. “Today marks the culmination of several months of discussions between OMV and Mubadala," said Khaldoon Al Mubarak, managing director and group chief executive of Mubadala Investment Company. "We have signed a landmark, multi-billion dollar deal, the largest single transaction in both Mubadala and OMV‘s history. It is also fully aligned with our long-term strategy as a company.” The transaction is expected to close in the fourth quarter of 2020 and is subject to regulatory approvals. Borealis, through Borouge, is undertaking two large-scale projects in Abu Dhabi's western region of Ruwais, including the development of the world's largest mixed-feed cracker and a fifth polypropylene unit. The planned expansion will see Borouge produce polyolefin products such as polyethylene and polypropylene as well as non-polyolefin products such as benzene and butadiene. The compounds are used in packaging, plastics and acrylics industries. The acquisition of a majority stake in Borealis will help OMV, which also operates an upstream concession offshore Abu Dhabi, to produce higher-value products. Mubadala said on Thursday that it recognises the “strong strategic fit” of Borealis’s business within OMV’s portfolio. Meanwhile, OMV said it plans to sell assets worth $2.3bn by the end of this year to fund its acquisition of the Borealis stake. It did not specify which assets it plans to divest but media reports indicated that OMV could sell its 51 per cent share in Gas Connect Austria and its German network of petrol stations. Rainer Seele, chairman of the OMV executive board and chief executive called deal with Mubadala "the biggest transformation in the company's history". "This turns the company OMV into an internationally important oil, gas and chemicals group, whose integrated business model extends from well to high-quality plastic along an extended value chain and repositions the group for a low carbon future,” he said. Borealis, also based in Austria, currently has more than 6,800 employees and operates in over 120 countries. The company provides services and products to customers globally, both directly and in collaboration with Borouge, a joint venture with Adnoc, and with Baystar, a joint venture with Total in Texas.