Austrian Utility OMV Sells Gas Pipeline Unit to Rival Verbund
(Reuters) - Austrian utility OMV said on Wednesday it will sell a majority stake in its gas pipeline subsidiary to rival Verbund, a deal that will help OMV reduce debt and finance its acquisition of a leading plastics maker.
In early March, OMV had said it would make divestitures worth $2.3 billion to finance a multi-billion dollar deal to buy one of the world's leading polymer producers, Borealis.
For OMV, this transaction will also lead to a debt reduction of more than 570 million euros ($666.16 million), it said.
Verbund will buy a 51% stake for 271 million euros in cash and assume its outstanding liabilities to OMV as of the date of transaction, the companies said.
At the end of 2019, the debt amounted to 165 million euros.
The two companies had held exclusive negotiations for months until Verbund submitted a binding offer in mid-June.
The buyer added it does not expect the transaction to have any effects on its full-year 2020 guidance as the closing will not take place until 2021. ($1 = 0.8557 euros)
Related News
Related News
- Trump Puts Keystone XL Pipeline Back in Discussion, Though Revival Faces Developer Resistance
- Army Corps Lists Enbridge’s Line 5 as ‘Emergency’ Project Eligible to Bypass Environmental Review
- Missouri Loses Control Over 1.5 Million-Mile Gas Pipeline Network as Feds Step In
- Energy Transfer Wins New York Court Ruling in $150 Million Pipeline Fraud Case
- $3 Billion Natural Gas Pipeline Expansion to Add 1.3 Bcf Capacity in Southeast Region
- Kinder Morgan Approves $1.4 Billion Mississippi Crossing Project to Boost Southeast Gas Supply
- Army Corps Lists Enbridge’s Line 5 as ‘Emergency’ Project Eligible to Bypass Environmental Review
- India’s GAIL Eyes U.S. LNG Deals Following Trump’s Policy Shift
- TC Energy Beats Q4 Profit Estimates, Driven by Mexico Pipelines' Success
- Michigan Court Backs Permits for Enbridge’s Line 5 Pipeline Tunnel Project
Comments