German industrial group MAN said Abu Dhabi state-owned group International Petroleum Investment Company (IPIC) has become the new majority owner of its industrial arm Ferrostaal.

Under the deal, IPIC has acquired 70 per cent of the shares leaving the rest for MAN. The transaction includes all business activities and subsidiaries of MAN Ferrostaal.
The price for 100 per cent of the shares amounts to 700 million euros, depending on the outcome of a mutual option that MAN and IPIC have agreed on for the sale and purchase of the remaining shares, said an official.  
Hakan Samuelsson, the chief executive officer of MAN, explained the rationale behind the sale.
“With this step, MAN is now concentrating on the manufacturing industries in the field of transport-related engineering. This focus improves the conditions for sustainable growth in all our business areas,” he noted. 
An elated Khadem Abdulla Al Qubaisi, managing director of IPIC, stressed on the growth potential to be leveraged with MAN Ferrostaal.
“We intend to award contracts for large industrial projects to MAN Ferrostaal and want to realise the potential for growth at home and abroad. At the same time, we intend to open up the market potential in the area of future technologies and deeper market access in the countries MAN Ferrostaal is active in,” he observed.