ADNOC and OMV forge strategic merger to create Borouge Group International

DUBAI, UNITED ARAB EMIRATES: ADNOC (Abu Dhabi National Oil Company) and Austria’s OMV have unveiled a strategic merger of their respective shareholdings in Borouge plc and Borealis AG, establishing a new entity known as Borouge Group International.

This newly formed company will subsequently acquire NOVA Chemicals Corporation, a prominent North American producer, in a substantial AED49.2 billion ($13.4 billion) transaction.

With the introduction of Borouge 4, this entity will evolve into a global chemicals titan, boasting a valuation exceeding AED220 billion ($60 billion) and securing its place as the world’s fourth-largest producer of polyolefins—a vital material for packaging, textiles, and industrial uses.

Under the joint ownership and control of ADNOC and OMV, Borouge Group International will maintain dual headquarters in Abu Dhabi and Vienna.

To achieve equitable ownership, OMV will infuse €1.6 billion (AED6.1 billion/$1.7 billion) into the consolidated entity.

The company aspires to generate AED1.8 billion ($490 million) in annual synergies while ensuring robust dividend growth for the current shareholders of Borouge plc.

Additionally, it will be publicly listed on the Abu Dhabi Securities Exchange (ADX).

Sultan Ahmed Al Jaber, ADNOC’s Managing Director and Group CEO, characterised the deal as a transformative leap in ADNOC’s chemicals strategy, harmonising with its global expansion goals. “By amalgamating Borouge, Borealis, and NOVA, we are cultivating a world-class leader in chemicals endowed with premium offerings, cutting-edge technologies, and comprehensive global market access. This initiative fortifies Abu Dhabi’s standing in the chemicals sector and enhances long-term value for our shareholders,” he remarked.

Borouge Group International will capitalise on the synergistic strengths of its three constituent companies, including access to competitive feedstocks, burgeoning markets, and proficiency in sustainable and recyclable products.

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The Borouge 4 expansion project, anticipated to be integrated into the new entity by 2026, represents an additional investment of AED27.5 billion ($7.5 billion).

This will elevate the company’s polyolefin production capacity to 13.6 million tonnes per annum (mtpa) across Europe, the Middle East, and North America.

Upon completion, ADNOC’s stake in Borouge Group International will be transferred to XRG, its newly established $80 billion international energy investment company.

Founded in 2024, XRG plays a pivotal role in ADNOC’s strategy for global growth, with investments encompassing gas, chemicals, low-carbon fuels, and energy infrastructure.

Polyolefins, renowned for their durability and versatility, find extensive application in packaging, household merchandise, medical supplies, and textiles.

By merging Borouge’s agricultural innovations, Borealis’ expertise in textiles, and NOVA’s sustainable packaging solutions, Borouge Group International aims to spearhead the industry in advanced, high-value chemical products.