Facebook Twitter Google Plus Vimeo Youtube Feed Feedburner

Business Home LBoard

IPIC merger with Mubadala not linked to 1MDB

July 1, 2016

IPICLONDON: International Petroleum Investment Co’s legal tussle with Malaysia’s 1MDB was not a consideration in its proposed merger with fellow Abu Dhabi investment firm Mubadala, a person close to IPIC said.

“The merger will bring together two of Abu Dhabi’s significant investment companies each with their respective strengths to create an even larger more efficient company with combined assets of US$135bn,” the person close to IPIC told IFR on Thursday. “In a deal on this scale, 1MDB was not a consideration.”

The comments come despite bankers suggesting on Wednesday that the merger is “almost certainly” linked to the spat with the Malaysian sovereign wealth fund.

Bankers said that the company was most likely entering a merger because its reputation had been “tarnished” by the around US$6.5bn claim against 1MDB, making it tougher for IPIC to come to the Eurobond market.

The fall in oil prices since their 2014 highs is another potential reason for the merger, bankers said on Wednesday.

A person close to the talks told Reuters the merger was likely to be completed by the end of 2017, and was being seen as a merger of equals.

– Reuters


Comments

Readers are required to have a valid Facebook account to comment on this story. We welcome your opinions to allow a healthy debate. We want our readers to be responsible while commenting and to consider how their views could be received by others. Please be polite and do not use swear words or crude or sexual language or defamatory words. FMT also holds the right to remove comments that violate the letter or spirit of the general commenting rules.

The views expressed in the contents are those of our users and do not necessarily reflect the views of FMT.

Comments