UAE’s ADNOC and Austria’s OMV will create a $60 billion chemicals joint venture
Abu Dhabi National Oil Company (ADNOC) and Austrian petrochemical company OMV will merge their shares in Borouge plc and Borealis AG. This will create a new global chemicals company called Borouge Group International, according to the state-run Emirates News Agency (WAM) on Monday.
Borouge Group International
A new company, Borouge Group International, will buy NOVA Chemicals Corporation, a company in North America, for $13.4 billion (AED 49.2 billion).
With this purchase and the addition of Borouge 4, the value of Borouge Group International will increase to over $59.9 billion (AED 220 billion). It will become one of the biggest chemical companies in the world and the largest producer of polyolefins globally.
The company will be jointly owned by ADNOC and OMV and will have headquarters in Vienna and Abu Dhabi, according to a WAM report.
OMV will invest $1.7 billion (AED 6.1 billion) in cash to balance its share in the company.
Growth and Shareholder Benefits
Borouge Group International is expected to achieve high profits, with $500 million (AED 1.8 billion) in savings per year. Existing Borouge plc shareholders will receive dividends and own shares in the new company, which will be listed on the Abu Dhabi Securities Exchange (ADX).
Polyolefin Production
The company will bring together the strengths of Borouge, Borealis, and NOVA to produce polyolefins, using advanced technology and sustainable materials. It will have access to key markets and important raw materials.
The company will offer a variety of products, from Borouge’s agricultural solutions to Borealis’ textiles and NOVA’s eco-friendly packaging.
The Borouge 4 expansion, which will be completed by 2026, will cost $7.5 billion (AED 27.5 billion). This will make the company the fourth-largest producer of polyolefins worldwide, with a capacity of 13.6 million tonnes per year across Europe, the Middle East, and North America.
ADNOC and OMV Partnership
This deal strengthens the long-term partnership between ADNOC and OMV. Once completed, ADNOC’s share in Borouge Group International will be transferred to XRG, ADNOC’s global energy investment division.
XRG was established in 2024 and is valued at over $80 billion. It focuses on energy projects such as gas, chemicals, low-carbon fuels, and energy infrastructure.
What Are Polyolefins?
Polyolefins are lightweight, durable materials used in products like packaging, household goods, medical supplies, and textiles.
Key Statement
Dr. Sultan Ahmed Al Jaber, ADNOC’s Managing Director and CEO, said: “With OMV, we are creating a global industry leader with top-quality products, advanced technology, and worldwide market access. This deal strengthens ADNOC, supports Abu Dhabi’s leadership in the chemical sector, and helps meet global demand while creating value for our shareholders.”
Published: 5th March 2025
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