Adnoc and OMV merge to create $96 billion plastics giant
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The news: Abu Dhabi National Oil Company (Adnoc) and Austria’s OMV have agreed to merge their petrochemical businesses, creating Borouge Group International, a company with an enterprise value of more than USD60 billion ($96.74 billion).
The new entity will acquire Canada’s Nova Chemicals and become the world’s fourth-largest polyolefins producer and the second-largest outside China.
The context: Polyolefins are widely used plastics derived from oil and gas, found in packaging, automotive parts, and construction materials.
The deal comes as Adnoc diversifies into fossil fuel-derived chemicals such as plastics as demand for gasoline and diesel declines with the rise of electric vehicles.
The numbers: The deal will combine two joint ventures: Borealis, which is 75% owned by OMV and 25% by Adnoc, and Borouge, which is 54% owned by Adnoc and 36% by Borealis.
Once the merger to create Borouge Group is completed, it will acquire Nova Chemicals from Mubadala, the United Arab Emirates’ sovereign investor for USD13.4 billion, the companies said.
Adnoc and OMV will each hold 46.94% of Borouge Group, with the remainder in free float. OMV will inject €1.6 billion in cash to equalise shareholding.
The company will be headquartered in Vienna and listed on the Abu Dhabi Securities Exchange.
The deal follows nearly two years of negotiations and is expected to close in the first quarter of 2026, subject to regulatory approvals.
Once completed, Adnoc’s stake will be transferred to XRG, its international investment arm.
The sources: ADNOC release , OVM release
