Abu Dhabi National Oil Company (ADNOC) and Austria-based OMV announced they will merge and create a $60+ billion chemical giant. This merged entity will be called Borouge Group International, which will acquire Nova Chemicals for $13.4 billion from Mubadala for $13.4 billion and create the world’s fourth-largest polyolefins player following the recontribution of Borouge-4 (at cost of about $7.5 billion) as measured by nameplate capacity with 13.6 mtpa of capacity across Europe, the Middle East and North America.
Borouge Group International will be jointly controlled as part of an equal partnership between ADNOC (46.94%) and OMV (46.94%), with OMV investing €1.6 billion cash into the new company, which will be listed on the Abu Dhabi Securities Exchange with a dual listing expected later on the Vienna Stock Exchange.
The new company is expected to be headquartered and domiciled in Austria, with regional headquarters in the UAE and feature a two-tier board structure with equal governance and voting rights between OMV and ADNOC. And Borouge Group International will retain key corporate hubs in Calgary, Pittsburgh and Singapore.
The merger is expected to close in the first quarter of 2026. Borouge Group International plans to raise up to $4 billion of primary capital in 2026 to be included in the relevant MSCI index.
The companies believe Borouge Group International will generate an annual cost savings of approximately $500 million.
This acquisition implies a multiple of about 7.5x forward through-the-cycle Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and is expected to be debt-financed through the capital markets.
Borouge Group International will combine the highly complementary strengths of three polyolefin leaders: competitive feedstock, differentiated and premium quality product offering, direct access to growth markets, advanced technologies, and leading circularity credentials. And with an extensive production footprint, innovation centers, and global sales network, Borouge Group International is expected to have a combined polyolefins nameplate production capacity of approximately 13.6 million tons per annum (mtpa), including current organic polyolefin growth projects.
KEY QUOTES:
“These transformative transactions mark a pivotal milestone in ADNOC’s global chemicals strategy as we deliver on our international growth mandate. 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.”
- Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO
“These landmark transactions represent a momentous step for OMV. They will accelerate our growth strategy in Chemicals and support OMV’s transformation into an integrated sustainable chemicals, fuels, and energy company. Together with ADNOC, our strategic partner of 25 years, we are creating a global polyolefins leader, exceptionally positioned for value creation by accessing the largest and most cost advantaged markets. We aim to significantly increase the sales volumes of innovative polyolefin premium products and be at the forefront of renewable and circular economy solutions. Together, OMV and ADNOC will build on a versatile and future-proof product portfolio and pursue significant organic growth opportunities. Most importantly, today’s agreement secures material synergies and long-term sustainable value creation for OMV’s shareholders. ADNOC and OMV have already proven that we are stronger together. We are convinced that we will unlock superior shareholder value on our joint path forward.”
- Alfred Stern, Chairman of the Executive Board and Chief Executive Officer of OMV
