Abu Dhabi-based sovereign investor Mubadala Investment Company has acquired a 1.9 percent stake in petrochemicals company Sibur, marking the company’s largest investment in Russia.
The acquisition between Mubadala and Sibur builds on the two firms’ existing working relationships. In 2015, Mubadala invested in Sibur’s transshipment terminal in Ust-Luga.
According to the statement, “The acquisition terms were agreed prior to the recent merger with TAIF, which is bound to further enhance the company’s position in the polyolefins and rubbers markets, contribute to the pipeline of growth capex projects and unlock additional operational synergies.”
“Mubadala and Sibur have had a long-standing partnership since 2015 and now we are excited to become shareholders in the company. Sibur’s track record of delivering complex large-scale projects and creating shareholder value is a testament to its first-class management team. Sibur’s merger with TAIF creates an even better-positioned player in the market that can capitalize on synergies and development opportunities. We have a lot of confidence in Sibur’s ability to navigate and transition the company to a low-carbon economy and create lasting value for its investors.”
Sibur, which was founded in 1995, is the market leader in the Russian petrochemicals industry, operating a balanced and integrated business model and servicing over 1,800 customers in 100 countries worldwide.
Mubadala is a long-term investor in the Russian economy, with an office in Moscow run by a team of more than 22 experienced regional specialists. Mubadala has invested over $3 billion in Russia and created a portfolio of around 50 investments in industries as diverse as infrastructure, real estate, commodities, banking, logistics, and technology since entering the market in 2010, resulting in strong financial returns.