ADNOC and OMV to Create Global Polyolefins Group
OMV and ADNOC agreed to combine their Borealis and Borouge shareholdings into Borouge Group International. ADNOC has also signed a share purchase agreement with Nova Chemicals, an indirect wholly owned subsidiary of Mubadala Investment Company, to acquire 100% of Nova Chemicals for an enterprise value of $13.4 billion. In addition, ADNOC and OMV have agreed for Borouge Group International to take over Nova Chemicals after closing.
Once fully operational, Borouge 4 is envisaged to be retransferred to Borouge Group International at the end of 2026 at an estimated cost of around $7.5 billion. When combined, the three highly complementary businesses will create the fourth-largest global polyolefin group with equal shareholdings by OMV and ADNOC, the companies said.
The acquisition of Nova Chemicals, a North American-based polyolefin producer, will further strengthen Borouge Group International’s presence across the Americas and increase its exposure to advantaged feedstock.
Alfred Stern, CEO of OMV, said: “These landmark transactions represent a momentous step for OMV. They will accelerate our growth strategy in Chemicals and support OMV’s transformation into an integrated sustainable chemicals, fuels, and energy company.”
Ahmed Al Jaber, ADNOC’s group CEO, added: “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."
Under the terms of the transactions, Borealis and Borouge will be combined, and OMV will inject €1.6 billion in cash into Borouge Group International to equalize shareholdings.
The new entity will be headquartered in Vienna, Austria, with regional headquarters in Abu Dhabi.
