Abu Dhabi’s Mubadala, Ipic name board for $125 bln merger

Abu Dhabi-based Mubadala Development and International Petroleum Investment Co. (Ipic) have named the new board for the $125 billion company that will be formed by their merger, United Arab Emirates’ state news agency WAM reported on Saturday.

Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi, will serve as the board’s chairman, while Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, has been named vice-chairman.

Mubadala CEO Khaldoon Al Mubarak will be chief executive of the new merged entity, which has been named​​ Mubadala Investment Company.

UAE energy minister Suhail Al Mazrouei, who was managing director of Ipic and chairman of Mubadala Petroleum, will also serve on the board. 

The other members are Mohammed Ahmed Al Bowardi, Hamad Al Hurr Al Suwaidi, Abdul Hamid Mohammed Saeed and Mahmood Ebraheem Al Mahmood.

The Abu Dhabi government ordered the merger of Mubadala and Ipic last June in order to achieve synergies and growth across the multiple sectors in which both companies are involved, such as energy and utilities, technology, aerospace, healthcare, real estate, and financial investments.

Mubadala was set up in 2002 and owns stakes in Emirates Global Aluminium, renewable energy firm Masdar, US giant GE, and private equity group Carlyle, among others.

Meanwhile, Ipic was established by a government decree in 1984 with a mandate to invest globally in energy and energy related industries, such as such as Austria’s OMV and petrochemical firm Borealis.

The merger announcement came shortly after the UAE capital decided to combine lenders National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) to create the Middle East’s largest bank with nearly AED 642 billion ($175 billion) in assets.