OMV and ADNOC to Form $60 Billion Polyolefins Leader

Strategic Merger and Investment

OMV and ADNOC have signed a binding agreement to merge their holdings in Borealis and Borouge into Borouge Group International, creating the fourth-largest global polyolefins company. OMV will inject EUR 1.6 billion into the new entity, with the amount adjusted for dividends paid until closing. The new company will be headquartered in Vienna, Austria, with regional headquarters in Abu Dhabi.

Acquisition of Nova Chemicals

Borouge Group International will acquire Nova Chemicals for an enterprise value of USD 13.4 billion, funded through acquisition debt. This acquisition aims to expand the company's footprint in North America and enhance its product offerings in advanced packaging solutions and proprietary technologies.

Future Developments and Financial Projections

Borouge 4, an ethylene and polyethylene expansion project, will be recontributed to Borouge Group International by the end of 2026 at an estimated cost of USD 7.5 billion. The project is expected to contribute approximately USD 900 million in EBITDA annually. The new company plans to raise up to USD 4 billion in equity capital markets to achieve MSCI index inclusion and maintain an investment-grade credit rating.

Timeline and Governance

The completion of the merger and acquisition is expected in Q1 2026, pending regulatory approvals and customary conditions. Borouge Group International will have equal governance rights between OMV and ADNOC, with a two-tier board structure. The company aims to realize substantial annual synergies of around USD 500 million in run-rate EBITDA, with 75% of the synergy potential expected within three years post-closing.