February 16, 2025 – ADNOC Announces Positive Talks for Merger and Acquisition to Form Global Polyolefins Giant
Abu Dhabi National Oil Company (ADNOC) officially announced on February 1st that it is engaged in active and constructive negotiations with OMV AG to consolidate their stakes in Borouge plc and Borealis AG, aiming to create a brand-new global polyolefins group. Simultaneously, ADNOC is considering acquiring Nova Chemicals Corporation from Mubadala Investment Company, viewing this acquisition as a significant contribution to the merged entity. ADNOC stated that it will provide the market with the latest information at an appropriate time.
Rumors of a potential merger between Borealis and Borouge by ADNOC had circulated in the market as early as 2023, with estimates suggesting that the combined entity could have a total valuation exceeding $30 billion. Now, not only has ADNOC confirmed the merger plans, but it has also revealed additional acquisition intentions, which are poised to further enhance the scale and strength of the merged entity.
According to industry insights from the Color Masterbatch Industry Network, in February 2024, ADNOC successfully acquired a 24.9% stake in OMV from Mubadala, Abu Dhabi’s sovereign wealth fund, thereby increasing its holdings in Borealis and Borouge. Borouge demonstrated strong profitability in its 2024 financial report, with a 24% year-on-year increase in net profit to $1.24 billion, driven by record production and sales volumes, as well as high utilization rates of polyethylene and polypropylene capacities. If the merger and acquisition plans are finalized, they are expected to create a new global polyolefins giant, further elevating the Middle East’s position in the global polyolefins industry.
Moreover, ADNOC’s collaboration with Wanhua Chemical in the polyolefins sector has attracted considerable attention. In July 2024, ADNOC, Borealis, Borouge, and Wanhua Chemical’s subsidiary, Wanrong New Materials (Fujian) Co., Ltd., signed an agreement to establish a 50-50 joint venture to construct a 1.6 million tons/year specialized polyolefins integrated facility in Fuzhou, Fujian Province. This cooperation not only highlights ADNOC’s strategic layout in the global polyolefins market but also reflects its close partnership with international chemical companies like Wanhua Chemical.
Notably, the Abu Dhabi Investment Authority (ADIA) has also become one of Wanhua Chemical’s significant shareholders. According to Wanhua Chemical’s third-quarter report in 2023, ADIA emerged as the company’s eighth-largest circulating shareholder, holding 19.3476 million shares, accounting for 0.61% of the circulating shares. This move has further deepened the cooperative relationship between ADNOC and Wanhua Chemical, laying a solid foundation for future collaborations.