Oil & Gas Adnoc and OMV in talks to create $30bn chemicals giant By Pramod Kumar July 5, 2023, 5:30 AM Wam Borouge attributed the slide in profit in 2023 to a 16% decline in average selling prices State-owned Abu Dhabi National Oil Company (Adnoc) and Austria’s OMV AG are in discussion over the possible merger of chemical companies Borouge and Borealis AG to create a chemicals and plastics giant worth more than $30 billion. Vienna-based Borealis is 75 percent owned by OMV, while Adnoc holds the remaining stake. Abu Dhabi-listed Borouge is a partnership between Adnoc and Borealis with a market value of $22 billion. The owners are in talks for the potential valuation and ownership structure of a new entity, Bloomberg reported, citing informed sources. Adnoc awards $700m contract to UK’s Petrofac Adnoc Gas to spend $1.34bn expanding UAE pipeline The broad outlines for merger negotiations are likely to be reached in the coming weeks. The sources said the two entities are in talks to propose a valuation of $10 billion for Borealis, including its Borouge stake. Moreover, Adnoc and OMV are discussing the possibility of equal shareholding and decision-making capabilities. The Austrian company wants the new entity’s headquarters to be in Europe, even if it is listed in Abu Dhabi. Adnoc made a preliminary $12 billion takeover approach for German polymers producer Covestro AG last month. However, it was rejected for being “too low”. The Abu Dhabi oil major announced plans to invest $150 billion in November 2022 as part of its 2023-2027 business strategy to expand production capacity for crude, natural gas and chemicals.
