Skip to content Skip to Search
Skip navigation

Adnoc and OMV in talks to create $30bn chemicals giant

Borouge attributed the slide in profit in 2023 to a 16% decline in average selling prices 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.

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.

Latest articles

Over 400 global food brands are taking part in the SaudiFood Manufacturing show in Riyadh this month

Saudi Arabia’s food factory count rises to 1,300

The total number of food factories operated by the Saudi Authority for Industrial Cities and Technology Zones (Modon) has reached 1,300, across 36 cities. The increase signifies the growing capacity of the domestic food industry and its localisation efforts, the state-run Saudi Press Agency reported. Food industry companies have recorded a growth rate of more […]

Garden, Nature, Outdoors

UAE commits $50m to development fund

The UAE has committed $50 million to the second phase of the Lives and Livelihoods Fund 2.0 (LLF 2.0), a multi-donor initiative targeting sustainable economic development in the Islamic Development Bank’s (ISDB) 57 member countries. The funding will be deployed by LLF 2.0 to support critical projects in health and infectious diseases, agriculture, and social infrastructure in low […]

Abu Dhabi’s last debt market activity included a $2 billion bond in May 2021 followed by a further $3 billion in September

Abu Dhabi launches $5bn bond issue

Abu Dhabi has initiated $5 billion in a three-tranche bond after a hiatus of three years, according to a media report. The $1.75 billion five-year bond, $1.5 billion 10-year tranche and $1.75 billion 30-year issue was priced at 35, 45 and 90 basis points, respectively, over US Treasuries, fixed income news service IFR reported. Abu Dhabi […]

A square in Cairo

‘Worst is behind us’ in Egypt’s black market dollar war says BMI

The Egyptian government’s priority for 2024 should be to keep the gap between the official and parallel exchange rates for Egypt’s pound and the US dollar as narrow as possible, says BMI Research. In a webinar on Tuesday BMI, a Fitch Group firm specialised in country risk, said that “the worst is behind us” in […]