The Abu Dhabi National Oil Company and Austria’s OMV have announced the creation of a new joint venture called Borouge Group International, which is valued at $60 billion. This new entity will combine their shareholdings in Borouge plc and Borealis AG and will also acquire the North American producer NOVA Chemicals Corporation for AED49.2 billion. With the addition of Borouge 4, Borouge Group International is projected to become a global integrated chemicals powerhouse worth over AED220 billion, ranking as the fourth largest producer of polyolefins in the world.

Borouge Group International will be jointly owned and controlled by ADNOC and OMV, with its headquarters located in both Vienna and Abu Dhabi. As part of the agreement, OMV will contribute €1.6 billion (equivalent to AED6.1 billion) in cash to ensure equal shareholding. The new company is expected to achieve annual synergies of approximately AED1.8 billion and will offer dividend growth for existing shareholders of Borouge plc, who will have ownership stakes in the new entity listed on the Abu Dhabi Securities Exchange (ADX).

Dr. Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO, emphasized that these transactions are significant milestones in ADNOC’s global chemicals strategy. He stated that the partnership with OMV, which has lasted 25 years, aims to create an industry leader with a portfolio of premium products and cutting-edge technologies. The merger of Borouge, Borealis, and the acquisition of NOVA Chemicals is set to enhance ADNOC’s capabilities and solidify Abu Dhabi’s position in the global chemicals market, addressing the rising demand for chemical products while creating value for shareholders.

The formation of Borouge Group International will leverage the strengths of three leaders in the polyolefin industry—Borouge, Borealis, and NOVA. This collaboration will provide competitive feedstocks and access to growth markets while focusing on innovative and sustainable product lines, including agricultural products from Borouge, textiles from Borealis, and sustainable packaging solutions from Nova. The Borouge 4 expansion is anticipated to be incorporated into the new company in 2026, with an investment of approximately AED27.5 billion, increasing its capacity to 13.6 million tonnes per annum across Europe, the Middle East, and North America.

Upon the completion of this venture, 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 poised to focus on a range of energy projects, including gas, chemicals, low-carbon fuels, and energy infrastructure. Polyolefins, produced by this new joint venture, are versatile materials widely utilized in manufacturing packaging, household goods, medical supplies, and textiles.