The Abu Dhabi government-owned International Petroleum Investment Company (Ipic) has agreed to buy a controlling 70 per cent stake in MAN Ferrostaal from its parent, the Munich-based MAN AG Group for 490 million euros (Dh2.4 billion), the chairman of MAN Ferrostaal’s executive board said.
“It’s an all-cash deal. Ipic will get the management control of the company when the closing takes place, which is presumably going to be end of March,” Matthias Mitscherlich told reporters here.
Mitscherlich said MAN Ferrostaal is worth 700 million euros.
He said MAN Ferrostaal will continue to have its headquarters in Germany, post acquisition, adding that when the new board of the company is formed, there will be four members from Ipic and two from the MAN AG Group.
Mitscherlich said the remaining 30 per cent of MAN Ferrostaal will remain with MAN AG Group.
“Ipic is excited by the potential of this acquisition. We are matching top class engineering, construction and project management skills and know-how with a bandwidth of opportunity that is not easy to obtain elsewhere,” Ipic’s Managing Director Khdem Al Qubaisi said.
MAN Ferrostaal is a provider of industrial services in two major sectors: projects and services. With 4,200 employees and an annual turnover of 1.4 billion euros, as of 2007, MAN Ferrostaal serves customers in more than 60 countries worldwide.
Ipic’s investment in MAN Ferrostaal provides Ipic the capability to access MAN Ferrostaal’s leading edge capabilities in the field of petrochemicals, solar power and project construction and management.
Mitscherlich said separately, a joint venture of IPIC and MAN Ferrostaal, IMF, is being formed in Abu Dhabi which would handle businesses within the emirate and the entire Middle East North Africa (Mena) region.
Ipic will have a 60 per cent stake in the joint venture, while MAN Ferrostaal will own the remaining 40 per cent. The joint venture plans to employ up to 500 people.