The Abu Dhabi-based investment firm Mubadala and Abu Dhabi’s state-owned oil and gas investment company, International Petroleum Investment Company (Ipic), are to merge under a directive from Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, amid a spate of consolidation in the emirate.

A joint committee will be created and given the responsibility of merging the two companies, state-owned news agency Wam reported today.

“The combined entity will realise synergies and growth in multiple sectors including the energy and utilities sector, technology, aerospace, industry, health care, real estate and financial investments,” according to WAM.

“It will also have the ability to contribute more significantly to the diversification of the economy, in line with the Abu Dhabi Plan and the country’s long-term vision.”

The merger of Ipic and Mubadala comes weeks after two state-run banks, National Bank of Abu Dhabi and First Gulf Bank started merger talks aimed at creating the biggest bank in the Middle East by assets.

Mubadala is a major investor in the UAE economy, with stakes in Emirates Global Aluminium, green energy firm Masdar and a host of other diversified companies. It also has stakes in companies such a US giant GE and private equity group Carlyle. Ipic has mainly stakes in energy companies, such as Austria’s OMV and petrochemical firm Borealis.

Source: thenational.ae