Abu Dhabi’s Mubadala pushes ahead on $125 bln merger

Mubadala Investment Company, the $125 billion merger of Abu Dhabi-based Mubadala Development Co. and International Petroleum Investment Co. (Ipic), is set to begin operating in May this year, the company said.

Mubadala Investment will be organized across four investment platforms: petroleum and petrochemicals; technology, manufacturing and mining; aerospace, information and communications technology, and renewables; and alternative investments and infrastructure.

Mubadala and Ipic named the board for the merged entity last month, adding that Mubadala CEO Khaldoon Al Mubarak would be chief executive of the new firm.

United Arab Emirates energy minister Suhail Al Mazrouei will also serve on the board. 

The Abu Dhabi government ordered the merger of the two companies last June in order to achieve synergies and growth across the multiple sectors in which both companies are involved.

Mubadala was set up in 2002 and owns stakes in Emirates Global Aluminium, renewable energy firm Masdar, US giant General Electric, 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.