- OMV injects EUR 1.6bn into Borouge Group International, with a USD 13.4bn acquisition of Nova Chemicals.
- Borouge 4 to be recontributed by 2026 at an estimated cost of USD 7.5bn.
- Borouge Group International targets USD 4bn equity raise and USD 2.2bn annual floor dividend.
- Completion of transactions expected in Q1 2026, subject to regulatory approvals.
Strategic Merger and Acquisition
OMV and ADNOC have signed a binding agreement to merge their shareholdings in Borealis and Borouge, forming Borouge Group International. This new entity will acquire Nova Chemicals for USD 13.4 billion, expanding its presence in North America.
Financial and Structural Details
OMV will inject EUR 1.6 billion into Borouge Group International, with the new company headquartered in Vienna and regional offices in Abu Dhabi. The company plans to list on the Abu Dhabi Securities Exchange and later on the Vienna Stock Exchange.
Growth and Synergies
Borouge Group International aims to unlock USD 500 million in annual EBITDA synergies, with 75% realized within three years post-closing. The company will benefit from a strong pipeline of organic growth projects and leverage Borealis’ and Nova Chemicals’ expertise.
Future Developments
Borouge 4, an ethylene and polyethylene expansion project, will be recontributed to Borouge Group International by 2026 at an estimated cost of USD 7.5 billion. The project is expected to contribute USD 900 million in annual EBITDA.
Market Position and Strategy
The new entity will be the fourth-largest polyolefins company globally, with a focus on innovative and sustainable solutions. It will have a proforma polyolefins capacity of 12.2 million tonnes per annum and olefin capacity of 11.4 million tonnes per annum.
Timeline and Approvals
The completion of the merger and acquisition is expected in Q1 2026, subject to regulatory approvals and customary closing conditions.
