OMV Increases Stake in MOL
OMV has purchased several blocks of MOL shares, which is understood to have been offered to other potential investors. The average price per share was close to the traded market price, implying a total of some EUR 1 billionn. Currently OMV now holds 18.6% of the issued MOL shares.
OMV seeks to strengthen its strategic participation in MOL through this operation. The company is convinced by the long-term benefits of a closer cooperation, which will allow two European companies to considerably increase the security of supply, a significant benefit for Europe. Furthermore the complementary strengths of both companies in Central Europe could be capitalized.
Central Europe represents the core market for both OMV and MOL and the two companies complement each other by focusing on different regions within this core market. An alliance between OMV and MOL would have the scale and scope to compete effectively with the larger oil and gas companies in the world.
By increasing its stake in MOL to 18.6 %, OMV is positioning itself in view of the upcoming wave of consolidation. A further consolidation will take place sooner or later in the industry. The benefits of an alliance between OMV and MOL have been highlighted by analysts and investors several times in the past and a combination between the two companies has been considered by the management of OMV and MOL many times. OMV regards the upcoming wave of consolidation as an opportunity for both companies to combine their strengths. Therefore it would make sense to start structured discussions with the MOL management. OMV thus invites MOL to an open and constructive dialogue. OMV in any case is prepared and ready to do so.
Wolfgang Ruttenstorfer, OMV's CEO, said: "It is our responsibility to evaluate all options to secure long-term energy supply for Central Europe in an increasingly competitive environment. This has always been an important element of our strategy." In addition Ruttenstorfer stated that the purchase of an additional stake in MOL strengthens OMV's position and constitutes an attractive stepping stone to longer term co-operation between the two companies.
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