The companies Abu Dhabi National Oil Company (ADNOC) and Austrian OMV Aktiengesellschaft announced plans to merge their stakes in Borealis AG and Borouge Pte Ltd to create a new structure called Borealis International Group. After this, the new structure will acquire Nova Chemicals, headquartered in North America, for 49.2 billion dirhams.
The significance of Borealis International Group, including the Borealis 4 expansion project, exceeds 220 billion dirhams, making it the fourth largest polyolefins producer in the world. The company will be managed and belong to both ADNOC and OMV, with offices in Vienna and Abu Dhabi.
OMV will contribute 6.1 billion dirhams in cash to the new structure to align its stake with ADNOC's stake, creating a high profitability in its class. It is expected that the business integration will bring an annual expected additional value of 1.8 billion dirhams, as well as increase profits for existing shareholders of Borouge Pte Ltd, who will receive shares in the new company Borealis International Group, which will be listed on the Abu Dhabi Securities Exchange.
The Executive Director of ADNOC, Dr. Sultan Ahmed Al-Jaber, noted that strategic deals will help realize the company’s international expansion strategy in the chemical sector and strengthen the UAE’s global leadership. According to Al-Jaber, the merger allows creating a leading company in the production of petrochemical products with a high-quality product portfolio and advanced technologies.
Borealis International Group will leverage the synergies and strengths of the three leading companies - Borealis, Borouge, and Nova in the polyolefins field, including competitive raw materials, direct access to growing markets, global technologies, and leadership in the production of processed products.
