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Abu Dhabi National Oil Co. (Adnoc), the state-owned oil giant, is contemplating the purchase of energy assets from Mubadala Investment Co., a sovereign wealth fund, as per Bloomberg News, citing sources familiar with the situation. Negotiations between Adnoc and Mubadala began in the latter part of the previous year but have recently hit a standstill due to differences in asset valuation.
Initially, the discussions revolved around a transaction valued at approximately $10 billion, one of the sources indicated. However, these talks have not progressed smoothly, and the parties involved have not reached an agreement on the worth of the assets in question.
Despite the current pause, there is an expectation that dialogue between the two Abu Dhabi-based entities will pick up again, potentially after the conclusion of Ramadan in late March. Both Adnoc and Mubadala executives, as well as Abu Dhabi’s leadership, are reportedly interested in advancing towards a deal.
It is important to note that no definitive decisions have been reached at this stage, and it remains uncertain whether the acquisition will come to fruition. The potential consolidation of energy assets under Adnoc’s umbrella could be significant for the oil and gas landscape in the region, yet the outcome is still pending.
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