ADNOC and OMV progress formation of Borouge Group International AG

Asset Usage Agreement

An Asset Usage Agreement for the Borouge 4 production complex allows Borouge Plc (and subsequently Borouge Group International AG) to operate and market B4 volumes in return for an at‑cost asset utilization fee. The arrangement is expected to provide financial flexibility and deliver an estimated USD 400 million cumulative net profit over the next three years, equating to about 10% annual earnings accretion to Borouge Plc after full ramp up.

Borouge 4 technical and ownership details

Borouge 4 is an integrated polyolefins complex with a 1.5 million tonnes per year ethane cracker and 1.4 million tonnes of polyethylene capacity, using Borstar® technology. The first plant is due to start up this quarter. B4 is owned 70% by ADNOC and 30% by OMV, and its acquisition by the combined group is not expected before 2029, preserving timing flexibility for capital outlays.

Scale, ratings and structure

With the Agreement, Borouge Group International AG will access 13.6 million tonnes of nameplate capacity across three continents, positioning it as the world’s fourth largest polyolefins producer. Rating agencies have indicated expected investment‑grade ratings of A (Negative) / Baa1 (Stable) / A‑ (Stable), reflecting a robust capital structure.

Timing, tender offer and dividends

The formation—via combination of Borouge Plc and Borealis and the acquisition of Nova Chemicals—remains on track, with transaction close anticipated by end‑March 2026 subject to customary conditions. A tender offer to convert Borouge Plc shares to Borouge Group International AG shares is expected in 2027, subject to market conditions and regulator approval. The intended annual dividend of 16.2 fils per share will be maintained by the new entity.