ADNOC & OMV unite to form AED 220bn global chemicals giant Borouge

Photo : Abu Dhabi Media Office

ADNOC and Austria’s company OMV have decided to join their shares in Borouge plc and Borealis AG to make a new big chemicals company called Borouge Group International. This company will become one of the largest in the world for making polyolefins, which are special plastic materials used in packaging, clothes, medical items, and daily products.

Stay informed with the latest news. Follow DXB News Network on WhatsApp Channel  

As part of this big plan, Borouge Group International will also buy NOVA Chemicals Corporation, a North American company, for AED 49.2 billion. With this deal and the Borouge 4 expansion, the company will be worth more than AED 220 billion and will be the fourth-largest producer of polyolefins in the world. It will have a production capacity of 13.6 million tonnes per year in Europe, the Middle East, and North America.

The main offices of Borouge Group International will be in Abu Dhabi and Vienna. Both ADNOC and OMV will own the company equally. To make sure the shares are equal, OMV will give €1.6 billion (AED 6.1 billion) in cash to the company. The new company will save about AED 1.8 billion every year, making it very profitable. Also, Borouge plc’s current shareholders will earn higher dividends as they will now own shares in this big global company listed on the Abu Dhabi Securities Exchange (ADX).

His Excellency Dr. Sultan Ahmed Al Jaber, ADNOC’s CEO, said that this is a very important step for ADNOC’s chemicals business worldwide. He explained that ADNOC and OMV have been working together for 25 years, and this new company will help them create better products, use modern technology, and sell more in global markets. He also said that this move will make Abu Dhabi a leader in the chemicals industry and help ADNOC grow stronger.

Borouge Group International will bring together the best ideas and skills from Borouge, Borealis, and NOVA Chemicals. This will help the company expand to new markets, use advanced technology, and focus on eco-friendly products. The company will make many different products, including Borouge’s farm plastics, Borealis’ special textiles, and NOVA’s green packaging solutions.

The Borouge 4 expansion, which will cost AED 27.5 billion, will become part of this new company in 2026. This will make the company even stronger and bigger in the plastic production industry.

This deal also makes the partnership between ADNOC and OMV stronger. Once the deal is completed, ADNOC will move its share in Borouge Group International to XRG, a new investment company started by ADNOC. XRG, launched in 2024, is already worth over $80 billion and focuses on gas, chemicals, low-carbon fuels, and energy projects worldwide.

Polyolefins, which are the main products of Borouge Group International, are light, strong, and long-lasting. They are used in many everyday products like food packaging, clothes, medical tools, and household goods. The company plans to lead the market with new and sustainable plastic solutions, making sure its products are high quality and good for the environment.

This big merger is a major step for ADNOC, helping it grow internationally and make Abu Dhabi a global leader in the chemicals business. The company aims to provide better products, use cleaner technology, and support a greener future.