The talks focus on a combination of the Borealis and Borouge businesses as equal partners under a jointly controlled, listed platform “to create a global polyolefin company with a material presence in key markets,” OMV said in a statement on Friday.

OMV and ADNOC already cooperate in the two companies. Borealis is 75% owned by OMV, with ADNOC holding a 25% stake. In Borouge, ADNOC holds a majority stake of 54%, with Borealis again owning 36%.

“This potential transaction would have a strong and compelling industrial logic,” commented Alfred Stern, chairman of the board and CEO of OMV. “Combining the two complementary businesses would bring together Borealis’ technological expertise, and specialty and sustainable polyolefins solutions, with Borouge’s advantageous cost position and access to attractive markets, that would create a new global polyolefin powerhouse with significant organic and inorganic growth potential.”

“This would build on more than 25 years of successful partnership with ADNOC and be one of the possible catalysts to achieve OMV’s Strategy 2030,” Stern added.