The European Commission has approved, according to EU merger regulations, the acquisition of plastics producer Borealis AG by OMV Aktiengesellschaft (OMV), according to a press release of the EU executive.

The European Commission has concluded that the proposed transaction does not raise competition concerns given that OMV already holds a stake in Borealis and that horizontal and vertical overlaps between the two companies’ activities are limited.

The transaction was analyzed according to the simplified merger assessment procedure, the Community Executive reported, according to Agerpres.

Prior to the crisis caused by the coronavirus pandemic (COVID-19), OMV signed an agreement with Mubadala to increase its stake in Borealis to 75% in a $4.68 billion deal. It is the largest transaction in OMV’s history, analysts say, and it will strengthen the company’s position in the industry and in the Middle East.
Mubadala, Abu Dhabi’s sovereign wealth fund, owns 64% of Borealis, while OMV’s stake is of 36%. In turn, Mubadala is the second largest shareholder in OMV, after the Austrian state.