Mubadala is now a partner in Tubacex’s OCTG unit: Mubadala closed its USD 200 mn acquisition of a 49% stake in Spain-based pipe manufacturer Tubacex's tubular solutions business for oil and gas exploration and production (OCTG), according to a press release.

Background: The sovereign wealth fund signed the acquisition agreement with Tubacex in May, with the transaction initially valued at USD 150 mn. The acquisition will see Mubadala investing in Tubacex's new OCTG plant in Abu Dhabi as part of the agreement, slated to be operational by the year's end. The new plant is set to bolster Tubacex’s position as the “primary OCTG supplier” in the region.

A boon for our localization ambitions: The transaction sees Mubadala joining the firm as a strategic partner, with plans to secure supply of [corrosion resistant alloys (CRA)] OCTG solutions for gas exploration as part of plans to boost local manufacturing.

The investment will fuel Tubacex’s expansion, driving its low carbon business growth and enabling it to pursue mergers and acquisitions. In turn, the anticipated expansion will boost Tubacex’s financial position, and accelerate its Next Transition plan (pdf) for 2027 to post an EBITDA of EUR 200 mn and generate EUR 1.2-1.4 bn in revenues.

Tubacex is no stranger to the UAE: The Spanish company received its largest-ever order in June 2022 from the Abu Dhabi National Oil Company (Adnoc), which ordered some 30k tonnes of CRA OCTG solutions for gas extraction to be supplied over a decade.

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