- OMV injects EUR 1.6 billion into Borouge Group International, with a cash injection reduced by dividends until closing.
- The acquisition of Nova Chemicals is valued at USD 13.4 billion, funded through acquisition debt.
- Borouge 4, valued at USD 7.5 billion, will be recontributed by end of 2026.
- Completion of transactions expected in Q1 2026, subject to regulatory approvals.
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.
