DUBAI, July 16 (Reuters) - Abu Dhabi National Oil

Company said on Wednesday it plans to transfer its 24.9%

shareholding in Austria's OMV AG to its XRG investment

unit ahead of the establishment of a chemicals company combining

existing OMV and ADNOC firms.

ADNOC last year bought a 24.9% stake in OMV from Abu Dhabi

sovereign wealth fund Mubadala, without disclosing the financial

terms.

Earlier this year, ADNOC and OMV agreed to merge their

polyolefin businesses to create a chemicals company with a $60

billion enterprise value.

The merged entity, Borouge Group International (BGI), is set

to be the world's fourth-largest polyolefins firm by production

capacity, behind China's Sinopec and CNPC and U.S.-based

ExxonMobil ( XOM ), ADNOC Downstream CEO Khaled Salmeen told

Reuters in March.

BGI will combine two joint ventures - Borealis, 75% owned by

OMV and 25% by ADNOC, and Borouge, 54% owned by

ADNOC and 36% by Borealis, the company announced in March.

In its statement on Wednesday, ADNOC said it is progressing

with preparation for the proposed establishment of BGI.

ADNOC's proposed 46.94% shareholding in BGI is expected to

be held by XRG upon completion of the transaction, subject to

regulatory approvals, the statement said.