ADNOC and Austria’s OMV will merge their shareholdings in Borouge plc and Borealis AG to create Borouge Group International, the companies announced.
This new combined company will then acquire NOVA Chemicals Corporation, a North American producer, for AED49.2 billion ($13.4 billion). With the inclusion of Borouge 4, Borouge Group International will become a AED220+ billion ($60 billion+) global integrated chemicals powerhouse and the world’s fourth largest producer of polyolefins.
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New ownership structure
Borouge Group International will be jointly owned and controlled by ADNOC and OMV, with headquarters in Vienna and Abu Dhabi. As part of the transaction, OMV will inject €1.6 billion (AED6.1 billion) in cash into the consolidated company to equalize its share. Borouge Group International will have best-in-class margins with around AED1.8 billion in synergies each year, and will deliver dividend growth for existing Borouge plc shareholders, who will be owners in the new company listed on the Abu Dhabi Securities Exchange (ADX).
Dr. Sultan Ahmed Al Jaber, ADNOC managing director and group CEO, said: “These transformative transactions mark a pivotal milestone in ADNOC’s global chemicals strategy as we deliver on our international growth mandate under the guidance of the UAE leadership. Building on our 25-year strategic partnership with OMV, we will create a new industry powerhouse, with a portfolio of premium products, cutting-edge technologies and worldwide market access. The visionary combination of Borouge and Borealis and acquisition of Nova Chemicals further future-proofs ADNOC and solidifies Abu Dhabi’s status as a leader in the chemicals sector, as we seek to meet the growing global demand for chemicals and associated products, while driving value creation and growth opportunities for our shareholders.”
Combined strengths
Borouge Group International will combine the complementary strengths of the three international polyolefin leaders – Borouge, Borealis, and NOVA – including competitive feedstocks, access to growth markets, world-class technologies, and leadership in recyclable products. The new company will also benefit from complementary product lines, from Borouge’s innovative agricultural products to Borealis’ textiles and Nova’s sustainable packaging solutions. The Borouge 4 expansion is expected to be transferred into the new company in 2026 at a cost of approximately AED27.5 billion, making it the world’s fourth largest polyolefin producer by nameplate capacity with 13.6 million tonnes per annum (mtpa) of capacity across Europe, the Middle East and North America.
The agreement strengthens the close historical collaboration and strategic partnership between ADNOC and OMV. Upon completion, ADNOC’s stake in Borouge Group International will be transferred to XRG, ADNOC’s international energy investment company. XRG, launched in 2024 with an enterprise value of over $80 billion, is the latest development in ADNOC’s strategy to accelerate international growth and drive greater value, and will initially focus on projects across the energy spectrum, from gas to chemicals to low-carbon fuels and energy infrastructure.
Polyolefins are durable and lightweight materials widely used in manufacturing and everyday products including packaging, household goods, medical supplies and textiles.
