ADNOC and OMV are set to transform the global petrochemicals landscape with the merger of their polyolefins businesses. The newly formed entity, Borouge Group International, is projected to achieve an enterprise value of $60bn and become the fourth-largest polyolefins producer by capacity, trailing only Sinopec, CNPC, and ExxonMobil.
The merger combines two established joint ventures: Borealis, in which OMV holds a 75% stake and ADNOC 25%, and Borouge, 54% owned by ADNOC and 36% by Borealis. The consolidation will create a balanced partnership, with ADNOC and OMV each holding roughly 47% of the new entity, and the remainder available as free float. OMV CEO Alfred Stern described the deal as “bringing a global chemicals group to Austria.”
As part of its aggressive expansion strategy, Borouge Group International will acquire Nova Chemicals from Abu Dhabi’s sovereign wealth fund Mubadala for $13.4bn, positioning the group to expand its footprint in North America. The merger is expected to deliver significant synergies, with annual cost savings estimated at around $500m.
In addition to the core merger, the new entity is set to acquire the Borouge 4 project an expansion initiative estimated at $7.5bn further reinforcing its global competitive position. The combined transaction marks the culmination of nearly two years of complex negotiations, and signals a new era in the chemicals sector.
The merged company will be headquartered in Vienna and initially listed in Abu Dhabi, with plans to potentially list in Vienna from 2027. The joint venture also aims to raise up to $4bn in primary capital in 2026 to be included in the MSCI index, highlighting its strategic importance in the global market.
ADNOC’s stake in Borouge Group will subsequently be transferred to its new international investment arm, XRG, marking a further step in its long-term strategy. With the merger, both ADNOC and OMV are poised to significantly strengthen their market positions, drive innovation, and deliver robust returns for investors amid a rapidly evolving petrochemical industry.
