Mubadala-Ipic merger likely to create more jobs in UAE
Emirati Minister of Energy Suhail Al Mazrouei on Tuesday said he expects more job creations, especially in the petrochemical sector, once the merger plans of Mubadala Development Co and International Petroleum Investment Co (Ipic) become a reality.
The merger between the two leading firms would steer the UAE economy on a growth path, he said.
“The merger will create an opportunity for us to consolidate our efforts and to forge partnerships that would be capable of enhancing global competitiveness and opening new markets for us and our companies,” said Al Mazrouei, also Ipic MD.
He added, “Teams are working day and night and we hope we would be able to make the announcement by the end of the year.”
The merger plan was announced during last summer and a final decision would be taken before the end of the year, officials said. The total asset value of the companies is estimated to be about US$125 billion, according to official figures.
But Mazrouei said the merger would open up more jobs by diversification and job creation. “Establishing this investment fund would lead to a quality economy for future generations and will promote a diversified economy,” he noted adding that, “it would enhance our competitiveness in the petrochemical industry, especially, working in tandem with Adnoc”.
The merger could bring even big players like MNCs such as North America-focused Nova, to the Middle East, as well as overseas synergies, to exploit the region’s untapped opportunities, say experts.
The combined may have on the Mubadala side, oil and gas production outside of Abu Dhabi of more than 400,000 barrels per day, with refining capacity of 1.5 million bpd, including its wholly owned Spain-based subsidiary Cepsa, as well as a 21 per cent holding in Japan’s Cosmo Oil.
“The combination of all the companies creates a huge integrated oil and gas company … but [it] does not need an integration of those companies at this stage,” Al Mazrouei said.