The Abu Dhabi National Oil Company (ADNOC) and Austria’s OMV have announced the merger of their shareholdings in Borouge plc and Borealis AG, creating Borouge Group International—a global chemicals giant valued at Dh220 billion.
As part of this expansion, the new company will acquire NOVA Chemicals Corporation, a North American producer, for Dh49.2 billion, making it the world’s fourth-largest polyolefin producer. Polyolefins are lightweight and durable materials widely used in packaging, textiles, medical supplies, and household products.
A New Global Leader in Chemicals
The new entity will be jointly owned and controlled by ADNOC and OMV, with headquarters in both Abu Dhabi and Vienna. OMV will inject Dh6.1 billion (€1.6 billion) in cash into the consolidated company to equalize its shareholding.
With synergies worth Dh1.8 billion annually, Borouge Group International is expected to deliver strong margins and drive dividend growth for Borouge plc shareholders, who will retain their stake in the publicly listed entity on the Abu Dhabi Securities Exchange (ADX).
The merger brings together the expertise and market reach of three major polyolefin leaders—Borouge, Borealis, and NOVA Chemicals—offering:
- Competitive feedstocks
- Access to high-growth markets
- Cutting-edge technologies
- Leadership in sustainable and recyclable products
Major Expansion with Borouge 4
A key part of the strategy is the Borouge 4 expansion, which will be transferred into Borouge Group International in 2026 at an estimated cost of Dh27.5 billion. This will increase production capacity to 13.6 million tonnes per annum (mtpa) across Europe, the Middle East, and North America, solidifying its position as a global leader in polyolefins.
The company’s diverse product portfolio will range from Borouge’s innovative agricultural products to Borealis’ textile solutions and NOVA’s sustainable packaging materials.
Strategic Vision & ADNOC’s International Growth
Dr. Sultan Ahmed Al Jaber, ADNOC’s Managing Director and Group CEO, highlighted the significance of the deal, stating:
“These transformative transactions mark a pivotal milestone in ADNOC’s global chemicals strategy. This visionary combination of Borouge and Borealis, along with the acquisition of NOVA Chemicals, future-proofs ADNOC and solidifies Abu Dhabi’s leadership in the chemicals sector.”
The agreement also strengthens ADNOC’s long-standing partnership with OMV, which spans over 25 years. Upon completion, ADNOC’s stake in Borouge Group International will be transferred to XRG, ADNOC’s international energy investment company.
Launched in 2024 with an enterprise value exceeding $80 billion, XRG is part of ADNOC’s strategy to accelerate global growth across the energy spectrum, including gas, chemicals, low-carbon fuels, and infrastructure.
With this landmark merger and acquisition, Abu Dhabi and ADNOC are cementing their position as key players in the global chemicals industry, poised to meet rising international demand and drive long-term value creation.
