ADNOC and OMV to form Borouge Group International in landmark chemicals merger

ADNOC and Austria’s OMV have announced a strategic merger of their shareholdings in Borouge plc and Borealis AG to establish Borouge Group International. The newly formed company will then acquire NOVA Chemicals Corporation, a leading North American producer, in a AED49.2 billion ($13.4 billion) deal.

With the addition of Borouge 4, the new entity will become a global chemicals powerhouse valued at over AED220 billion ($60 billion), positioning itself as the world’s fourth-largest producer of polyolefins—a crucial material in packaging, textiles, and industrial applications.

A new industry powerhouse

Jointly owned and controlled by ADNOC and OMV, Borouge Group International will have dual headquarters in Abu Dhabi and Vienna. To equalize ownership, OMV will inject €1.6 billion (AED6.1 billion/$1.7 billion) into the consolidated entity.

The company aims to deliver AED1.8 billion ($490 million) in annual synergies while ensuring strong dividend growth for existing Borouge plc shareholders. It will also be listed on the Abu Dhabi Securities Exchange (ADX).

Strategic vision and growth

Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO, described the deal as a transformative step in ADNOC’s chemicals strategy, aligning with its global expansion mandate.

"By combining Borouge, Borealis, and NOVA, we are creating a world-class chemicals leader with premium products, cutting-edge technologies, and global market access. This move strengthens Abu Dhabi’s position in the chemicals sector and drives long-term value for our shareholders," he stated.

Borouge Group International will leverage the complementary strengths of its three constituent companies, including access to competitive feedstocks, high-growth markets, and expertise in sustainable and recyclable products.

Borouge 4 expansion

The Borouge 4 expansion project, expected to be integrated into the new entity in 2026, represents an additional AED27.5 billion ($7.5 billion) investment. This will boost the company’s polyolefin production capacity to 13.6 million tonnes per annum (mtpa) across Europe, the Middle East, and North America.

The agreement marks a new chapter in ADNOC’s long-standing partnership with OMV and will further integrate ADNOC’s international energy investments. Upon completion, ADNOC’s stake in Borouge Group International will be transferred to XRG, its newly launched $80 billion international energy investment company.

XRG, established in 2024, plays a key role in ADNOC’s global growth strategy, with investments spanning gas, chemicals, low-carbon fuels, and energy infrastructure.

Polyolefins, known for their durability and versatility, are widely used in packaging, household goods, medical supplies, and textiles. By combining Borouge’s agricultural innovations, Borealis’ textile expertise, and NOVA’s sustainable packaging solutions, Borouge Group International aims to lead the industry in advanced, high-value chemical products.

This merger not only strengthens ADNOC’s global footprint but also positions Abu Dhabi as a leader in the future of the chemicals sector.