Mubadala Investment Company has announced its largest investment in Russia–the acquisition of a 1.9 percent stake in Sibur, the largest integrated petrochemicals company in Russia and one of the fastest-growing companies in global petrochemicals.
The Abu Dhabi-based sovereign investor, managing a global portfolio of assets valued at $243 billion, said the acquisition terms were agreed upon before Sibur’s recent merger with TAIF.
Founded in 1995, Sibur is the leader in the Russian petrochemicals industry, operating a balanced and integrated business model and servicing over 1,800 customers in 100 countries worldwide.
The company is currently transitioning to an ESG-driven strategy and governance framework, which is expected to enable Sibur to develop into one of the most sustainable industry market participants.
Faris Sohail Al Mazrui, Head of Mubadala’s Russia and CIS Investment Program, said: “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.”
The transaction between Mubadala and Sibur builds on the established working relationship between the two companies. In 2015, Mubadala invested in Sibur’s transshipment terminal in Ust-Luga.
Mubadala’s global portfolio spans six continents with interests in multiple sectors and asset classes, including shareholding in Borealis, a global leader in polyolefin production, and in Nova Chemicals, a plastics and chemicals producer in North America.
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.
Since entering the market in 2010, Mubadala has deployed over $3 billion and built up a portfolio of about 50 investments in Russia in sectors as wide-ranging as infrastructure, real estate, commodities, banking, logistics and technology, resulting in strong financial returns.