ADNOC and OMV to merge polyolefin businesses to create $60 billion giant
06 Mar 2025
State-owned Abu Dhabi National Oil Company (ADNOC) and Austria's OMV will merge their polyolefin businesses to create a $60 billion chemicals powerhouse, called Borouge.
As per the framework agreement, ADNOC will combine its stake in Borouge Group with OMV’s stake in Borealis to create Borouge Group International, while the new entity will acquire Nova Chemicals for $13.4 billion, creating the world’s fourth-largest polyolefins manufacturer.
Nova Chemicals Holdings GmbH, an indirect wholly owned company of Mubadala Investment Company PJSC, a leading US polyethylene producer with 2.6 million tonnes of polyethylene capacity and 4.2 million mt of ethylene capacity.
ADNOC and OMV will jointly control Borouge Group International with an equal partnership of 46.94 per cent each. OMV will inject €1.6 billion cash into the merged entity to equalise shareholding.
Bo rouge Group International will be headquartered in Vienna with regional headquarters in Abu Dhabi and will be listed on the Abu Dhabi Stock Exchange (ADX). The company has a global footprint with a range of premium products,
The merged Borouge Group hopes to bring in an additional profit margin of $500 million annually due to synergies, beginning with the first year of operation.
Upon completion of the transaction, ADNOC's stake in Borouge Group International will be transferred to ERG, which will realise the full value potential of the merged company.
Borouge Group International will be the fourth-largest polyolefin producer with installed capacity of 13.6 MTPA across Europe, the Middle East and North America.
The Borouge Group International will go through a recontribution process, involving an expenditure of $7.5 billion, which is expected by end of 2026.
The transactions are expected to be completed in Q1 2026, subject to regulatory approvals and other customary conditions.
