ADNOC and OMV agree to $60 billion merger, creating a global polyolefin powerhouse
The merger is expected to generate operational synergies, with cost savings projected at $500 million annually. Additionally, the new entity will serve as a platform for further acquisitions in the polyolefins sector, reinforcing ADNOC and OMV’s market presence.
The global petrochemicals industry is set for a significant transformation as Abu Dhabi National Oil Company (ADNOC) and Austria’s OMV have reached an agreement to merge their polyolefin subsidiaries in a deal valued at $60 billion. The combined entity, to be named Borouge Group International, would become the world’s fourth-largest polyolefin producer, strengthening its parent companies’ competitive position in the global market.
Under the terms of the agreement, OMV’s Borealis and ADNOC’s Borouge will consolidate their two joint ventures: Borealis and Borouge. Borealis is currently 75% owned by OMV and 25% by ADNOC, while Borouge is 54% owned by ADNOC and 36% by Borealis. Following the merger, ADNOC and OMV will each hold an equal stake in the newly formed company.
As part of its expansion strategy, Borouge Group International is also set to acquire Canada’s Nova Chemicals Corp for $13.4 billion, including debt. The merger is expected to generate operational synergies, with cost savings projected at $500 million annually. Additionally, the new entity will serve as a platform for further acquisitions in the polyolefins sector, reinforcing ADNOC and OMV’s market presence.
Following initial discussions announced in 2023, the transaction is anticipated to close in Q1 2026, pending regulatory approvals from relevant authorities.
Written by: Derek Yong