March 28, 2025 – Global Petrochemical Industry Witnesses Major Merger as ADNOC and OMV Join Forces to Create New Giant
In a landmark deal for the global petrochemical industry, Abu Dhabi National Oil Company (ADNOC) of the United Arab Emirates and Austria’s OMV Group have officially announced the merger of their respective polyolefin businesses under a new entity, Borouge Group International.
The merger, which involves OMV’s Borealis division and ADNOC’s Borouge company, will see OMV inject an additional €1.6 billion in cash. Furthermore, the new company will jointly acquire Nova Chemicals, a Canadian plastics producer wholly owned by Mubadala, Abu Dhabi’s sovereign investment arm, for a price of $13.4 billion. Nova Chemicals, a leading producer of polyethylene in North America with an annual capacity exceeding 5 million tonnes, will add significant strength to the merged entity.
Headquartered in Vienna, Austria, with a regional headquarters in Abu Dhabi, Borouge Group International plans to list on the Abu Dhabi and Vienna stock exchanges. The new company, with an expected market value of over $60 billion, will be jointly controlled by ADNOC and OMV, each holding a 46.94% stake. However, following the reorganization, ADNOC will transfer its ownership in the new company to XRG, a newly established global low-carbon energy and chemicals investment firm under ADNOC.
Launched by ADNOC in November 2024 with a valuation exceeding $80 billion, XRG aims to double its asset value by capitalizing on the growth in clean energy demand over the next decade. This merger is the culmination of nearly two years of negotiations between ADNOC and OMV, who already have a合作 foundation, such as the jointly constructed Borouge 4 project.
Located within the Ruwais petrochemical complex in Abu Dhabi, the Bourouge 4 project is expected to invest $6 billion and, upon completion, will increase Borouge’s polyolefin production capacity to 6.4 million tonnes per year, making it the largest single-site polyolefin complex globally. Polyolefins, an important class of thermoplastic resins, are widely used in various applications such as films, pipes, sheets, molded products, and wire and cable insulation.
Analysts point out that this merger will integrate resources and expand markets for both parties, reducing operating costs through synergies and enhancing market competitiveness. Moreover, Nova Chemicals’ technological advantages complement OMV and ADNOC’s global footprint, giving the merged company the most complete polyolefin industry chain worldwide, covering everything from raw material supply to end products.