Ipic and Mubadala name board for $125 billion mega merger

The chairman of the board of the merged conglomerates will be Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces.

Mubadala Development and International Petroleum Investment Company (Ipic) have named the new board for their US$125 billion merged company, the government announced on Saturday.

The chairman of the board of the combined conglomerates will be Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, with Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, as vice chairman.

Khaldoon Al Mubarak, the Mubadala chief executive, will be chief executive of the new merged entity, which has been named​​ Mubadala Investment Company, which will be one of the world’s largest strategic investment companies with 68,000 employees.

Other board members include Suhail Al Mazrouei, the Minister of Energy, who was also managing director of Ipic and chairman of Mubadala Petroleum.

The structure of the new company, including its divisions, which span aerospace and defence, information and communications technologies, metals manufacturing, as well as energy, is expected to be detailed by the new company after the board meets.

That will include the shape of the diverse energy interests covering the Masdar renewables portfolio, power utilities, as well as oil, gas and petrochemicals investments.

Of the combined group’s $125bn assets at the end of 2015, the energy portfolio made up about two-thirds of Ipic’s assets and about 10 per cent of Mubadala’s, including Mubadala Petroleum.

The combined company will have oil and gas production outside Abu Dhabi of more than 850,000 barrels of oil equivalent per day (boepd) with refining capacity of 1.5 million bpd, including its wholly-owned subsidiary Cepsa, and 21 per cent holding in Japan’s Cosmo Oil.

Other large parts of the portfolio include GlobalFoundries, a chip maker which accounts for about 18 per cent of the combined company’s assets.

Some questions still to be answered are what might happen to investments that are considered as non-core. The company has not officially commented on rumours of an investment partnership with Softbank of Japan, for example.

Four other board members were named:

Hamad Al Hurr Al Suwaidi comes from Ipic and has held a number of senior government and government-related board positions in Abu Dhabi, including being a member of the Supreme Petroleum Council.

Mohammed Al Bowardi is the Minister of State for Defence Affairs. He has been head of the water and electricity regulator in Abu Dhabi and is vice chairman of Mubadala’s Dolphin Energy unit, which brings gas from Qatar.

Abdulhamid Mohammed Saeed, whose positions include managing director of FGB and Reem Investments.

Mahmood Al Mahmood is the chief executive of ADS Holding, a privately held financial services firm based in Abu Dhabi.


Follow The National's Business section on Twitter