Abu Dhabi state investor Mubadala halts business with Goldman Sachs amid 1MDB lawsuit

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Abu Dhabi state investor Mubadala has suspended any new business dealings with Goldman Sachs since its subsidiary filed a lawsuit in November ...

DUBAI/ABU DHABI: Abu Dhabi state investor Mubadala has suspended any 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.

Over the last few years, New York-based Goldman has ranked among the top banks for takeover advice in Abu Dhabi, the oil-rich capital of the United Arab Emirates.The investment bank was hired by the Abu Dhabi government to advise a 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.

International Petroleum Investment Co , which merged with Mubadala in 2017, filed a civil legal action in New York in November against Goldman and others, alleging they"played a central role in a long-running effort 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 .

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