Home / Business / Mubadala suspends dealings with Goldman Sachs

Mubadala suspends dealings with Goldman Sachs

Abu Dhabi state investor Mubadala has suspended new business dealings with Goldman Sachs since its subsidiary filed a lawsuit in November against the U.S. bank and others to recover losses suffered through its dealings with Malaysian state fund 1MDB.

“We have suspended any activities with Goldman Sachs pending outcome of the litigation,” Brian Lott, spokesman of Mubadala Investment Co, said in response to questions from Reuters.

“The only exceptions are engagements signed prior to the litigation, which will continue as per contractual terms,” he said.

A spokesman for Goldman Sachs declined to comment.

Mubadala, which manages over $225 billion in assets, holds stakes in some of Abu Dhabi’s biggest companies as well as stakes in global firms such as Spanish energy firm Cepsa and Austria’s OMV.

For Goldman Sachs, the suspension of new business with Mubadala comes at a bad time as Abu Dhabi is embarking on a privatization spree that raises the prospect of several big deals in the offering for investment banks.

Over the last few years, Goldman has ranked among the top banks for takeover advice in Abu Dhabi, the oil-rich capital of the United Arab Emirates.

The suspension of business follows a civil legal action filed by International Petroleum Investment Co (IPIC) in New York in November against Goldman and others, alleging they played a role in trying “to corrupt” former executives of IPIC and its subsidiary Aabar Investments, and “mislead” IPIC and Aabar, aiming to further the business of Goldman and 1Malaysia Development Bhd (1MDB). IPIC merged with Mubadala in 2017,

Goldman Sachs has said that it will contest the claim ‘vigorously’.

Three banking sources told Reuters that Goldman Sachs was not being invited to potential advisory business from Mubadala, until the litigation was resolved, with one saying that the state fund had “imposed an informal boycott” on the investment bank.

Goldman Sachs’ business in Abu Dhabi in recent years included advising a government steering committee that oversaw a merger between Aldar Properties and Sorouh Real Estate in 2013. The bank also worked on a merger valuation plan for the Abu Dhabi and Dubai bourses, in 2014, which was shelved as terms could not be agreed.

Abu Dhabi’s privatization program has already seen the sale of stakes in its national oil company to international partners, as well as corporate mergers including banks.

Goldman Sachs advised Abu Dhabi National Oil Company on the stake of its refining unit, sources said.

The deal, announced in January saw Italy’s Eni and Austria’s OMV agree to pay a combined $5.8 billion to take a stake in the refining business and establish a new trading operation owned by the three partners.

Malaysia’s 1MDB is the subject of corruption and money-laundering investigations in at least six countries.

An estimated $4.5 billion was misappropriated from 1MDB by high-level officials of the fund and their associates between 2009 and 2014, the U.S. Justice Department has alleged.

Source: Reuters

Check Also

4th Future Manufacturing and Trade Summit slotted for Dubai

The 4th edition of the annual Future Manufacturing and Trade Summit, hosted by Dubai Exports, …

2 comments

  1. Angel NicGillicuddy

    Misappropriated ? does that mean it disappeared from The Light and slithered away into The Dark Realms?

  2. Angel NicGillicuddy

    Making The Switch to using US Dollars with Demurrage will keep that from ever happening again. It’s part of The Sequence of things.
    Look for it soon. It’s part of The Best Business Plan. For ALL the people including
    the poor and the wealthy. And it’s The Best Business Plan for the Earth. And Life.
    As long as we keep using the hoardable
    form of money we will ALL
    be on The Path to illusion and destruction,
    back and forth everything manipulated by
    The CASH Mob.
    President Trump is definitely not part of The CASH Mob. He would be their enemy.
    Cheers to that,
    Angel NicGillicuddy

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: