The global petrochemicals business is about to undergo a dramatic upheaval, as Abu Dhabi National Oil Company (ADNOC) and Austria’s OMV have agreed to merge their polyolefin divisions for $60 billion. The combined firm, to be known as Borouge Group International, would become the world’s fourth-largest polyolefin producer, enhancing the parent companies’ competitive position in the worldwide market.
According to the terms of the agreement, OMV’s Borealis and ADNOC’s Borouge would merge their two joint ventures: Borealis and Borouge. Borealis is presently 75% held by OMV and 25% by ADNOC, whereas Borouge is 54% controlled by ADNOC and 36% by Borealis. Following the merger, ADNOC and OMV will each own an equal interest in the newly formed firm.
As part of its expansion strategy, Borouge Group International plans to pay $13.4 billion, including debt, to acquire Canada’s Nova Chemicals Corp. The combination is expected to yield operational synergies, with annual cost savings of $500 million. Furthermore, the new firm will act as a foundation for future acquisitions in the polyolefins sector, strengthening ADNOC and OMV’s market positions.
Following initial conversations announced in 2023, the transaction is expected to completion in Q1 2026, subject to regulatory clearances from the necessary authorities.