Abu Dhabi takeover of MAN Ferrostaal is confirmed

Mar 25, 2009 at 05:58 pm by Staff


IPIC’s Purchase of a majority share of MAN Ferrostaal and its subsidiaries by Abu Dhabi’s International Petroleum Investment Company has taken effect following approval by international antitrust authorities, with an option agreed on the sale of the remainder. Under the deal IPIC has acquired 70 per cent of the company from MAN, which still holds the remaining 30 per cent. The deal values the company at 700 million Euros (A$1.36 billion), subject to the outcome of the mutual option agreed for the sale and purchase of the remaining shares. MAN chief executive Håkan Samuelsson says the sale – which includes all business activities and subsidiaries – allows MAN to concentrate on transport-related engineering manufacturing. IPIC managing director HE Khadem Abdulla focusses on the growth potential to be leveraged: “We intend to award contracts for large industrial projects to MAN Ferrostaal and want to realise potential for growth at home and abroad. At the same time, we intend to open up market potential in the area of future technologies and deeper market access in the countries MAN Ferrostaal is active in.” MAN Ferrostaal chief executive Dr Matthias Mitscherlichsees the takeover as a chance for growth: “At IPIC, MAN Ferrostaal belongs to the core business. “This is the best condition to grow. For our large industrial business, IPIC’s high equity is a real asset, because our markets and our partners see this as an important element of stability.” IPIC was established in 1984 and made its first investments in 1988. Currently there are 11 strategic partnerships, all with a capital investment value of well over US$14 billion. The portfolio includes OMV (17.6%), Cosmo Oil Co Ltd (20%), Borealis (65%), AMI Agrolinz Melamine International (50%), Oman Polypropylene LLC (20%), Hyundai Oilbank (70%), Compania Espanola De Petroleos/CEPSA (9,5%), Pak-Arab Refinery/Parco (30%), Arab Petroleum Pipelines/Sumed Company (15%), Energias de Portugal (2%) and Gulf Energy Maritime/GEM (30%), MAN Ferrostaal (70%) and Oil Search Limited (17,6%). Activities in printing and packaging machinery are only a part of MAN Ferrostaal, which is a global provider of industrial services in plant construction and engineering. Last month, MAN Ferrostaal and the now-independent manroland announced the two would end their agency agreement in September, the German printing machinery company setting up its own sales and service operations in markets – including Asia and Australasia – reviously serviced by MAN Ferrostaal. As a general contractor in plant construction, the company offers project development, project management and financial planning for turnkey installations, including petrochemical plants, gas and solar power stations, oil and gas installations, biofuels and industrial plants. The company also operates as an independent sales and service partner in the automotive, piping and marine construction sectors, employing around 4,400 people in 60 different countries. In 2008, its annual turnover amounted to 1.6 billion Euros (A$3.11 billion).
Sections: Print business