ADNOC, OMV Merge Holdings To Create Borouge Group International And Acquire NOVA Chemicals

Abu Dhabi National Oil Company (ADNOC) and Austria's OMV announced a merger of their shareholdings in Borouge plc and Borealis AG to form Borouge Group International. The new company will acquire NOVA Chemicals Corporation, a North American producer, for AED49.2 billion.

Sultan Ahmed Al Jaber, ADNOC's Managing Director and Group CEO, described the merger and acquisition as a major step in ADNOC's global chemicals strategy. He highlighted that these changes align with ADNOC's international growth plans under the UAE leadership.

"These transformative transactions mark a pivotal milestone in ADNOC's global chemicals strategy as we deliver on our international growth mandate, under the guidance of the UAE leadership," said Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO.

"Building on our 25-year strategic partnership with OMV, we will create a new industry powerhouse, with a portfolio of premium products, cutting-edge technologies and worldwide market access. The visionary combination of Borouge and Borealis and acquisition of Nova Chemicals, further future-proofs ADNOC and solidifies Abu Dhabi's status as a leader in the chemicals sector, as we seek to meet the growing global demand for chemicals and associated products, while driving value creation and growth opportunities for our shareholders," Al Jaber added, according to WAM.

The merger of Borouge and Borealis, along with the acquisition of Nova Chemicals, will strengthen ADNOC's position and reinforce Abu Dhabi's leadership in the chemicals sector. The move aims to meet the increasing global demand for chemicals while creating value and growth opportunities for shareholders.

With the addition of Borouge 4, Borouge Group International will become a global chemicals leader worth over AED220 billion and the world's fourth-largest polyolefins producer. ADNOC and OMV will jointly own and control the company, with headquarters in Vienna and Abu Dhabi.

As part of the deal, OMV will invest €1.6 billion (AED6.1 billion) in cash to balance its share in the company. Borouge Group International aims to achieve around AED1.8 billion in yearly cost savings and increase dividends for existing Borouge plc shareholders.

The company will be listed on the Abu Dhabi Securities Exchange (ADX).

Borouge Group International will merge the strengths of Borouge, Borealis, and NOVA, combining competitive feedstocks, advanced technologies, and recyclable product expertise. The company will offer diverse products, from agricultural solutions to textiles and sustainable packaging.

By 2026, the AED27.5 billion Borouge 4 expansion will make it the world's fourth-largest polyolefin producer, with a 13.6 million mtpa capacity across Europe, the Middle East, and North America.

The deal strengthens ADNOC and OMV's strategic partnership. ADNOC's stake in Borouge Group International will transfer to XRG, its energy investment firm, launched in 2024 with an $80 billion enterprise value.

XRG focuses on global energy projects, from gas and chemicals to low-carbon fuels. Polyolefins are lightweight, durable materials used in packaging, medical supplies, textiles, and household goods.