Austria’s oil major OMV and Abu Dhabi’s sovereign investor Mubadala agreed terms for the $4.68 billion deal, which will give OMV a 75% controlling share in petrochemicals company Borealis, Kallanish Energy reports.

The acquisition of a 39% stake from Mudabala was announced earlier this week and the final agreement was signed on Thursday. The transaction is slated to close by year-end and be supported by a €2 ($2.23) billion divestment program.

After completion, Mubadala will retain its 25% stake and some indirect ownership through a 24.9% interest it holds in OMV.

The Vienna-based Borealis is a leading petrochemical company in Europe, with presence in 120 countries. Its activities in plastic recycling are a “perfect addition” to OMV’s ReOil technology for chemical recycling of post-consumer-plastic to synthetic crude, OMV said.

The downstream expansion for OMV was described by its CEO Rainer Seele as the biggest transformation in the company’s history. “This turns OMV into a global oil, gas and chemicals group, whose integrated business model extends from the wellhead to high-quality plastic and repositions the Group for a low carbon future,” he said.

The transaction seals a repositioning of OMV in a low-carbon world. As a result, the company will become a leading provider of polyolefins and base chemicals. Joint production capacities make OMV the No.1 producer of ethylene and propylene in Europe, and one of the top-10 polymer producers worldwide.

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