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OMV and ADNOC to merge polyolefins businesses in a joint

venture

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JV named ‍Borouge Group International to acquire Nova

Chemicals

for $13.4 billion

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ADNOC and OMV to have equal share in JV

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New company to be listed on Abu Dhabi Securities Exchange

By Gursimran Mehar

March 4 (Reuters) - Austrian energy firm OMV

and Abu Dhabi National Oil Co will merge their polyolefin

businesses to create a $60 billion chemicals joint venture,

capping two years of talks, the companies said.

The JV will acquire Canada's Nova Chemicals Corp from Abu

Dhabi's sovereign wealth fund Mubadala for $13.4 billion

including debt to expand its business in North America, they

said in separate statements on Monday and Tuesday.

Nova is a polyethylene producer with 2.6 million metric tons

of polyethylene capacity and 4.2 million metric tons of ethylene

capacity.

The JV, named ‍Borouge Group International, will combine two

joint ventures - Borealis, owned 75% by OMV and 25% by ADNOC -

and Borouge, owned 54% by ADNOC and 36% by

Borealis.

As part of the deal, OMV will inject 1.60 billion euros

($1.68 billion) in cash into the new company, which will be

listed on the Abu Dhabi Securities Exchange, with a second

listing on the Vienna Stock Exchange expected later.

ADNOC and OMV - which is partly owned by the Austrian

government and counts Mubadala as its second-largest shareholder

- will each own roughly 47% of the new JV, with the remainder

being free float. Borouge shareholders will be offered shares in

the venture.

Borouge Group International will look to raise up to $4

billion of primary capital in 2026, the companies said.

The companies expect the joint venture and the close of the

deal for Nova to be completed in the first quarter of 2026, and

annual cost savings of around $500 million.

The new company will be headquartered in Austria, and have a

two-tier board structure with equal governance and voting rights

between OMV and ADNOC.

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($1 = 0.9545 euros)

(Reporting by Gursimran Kaur in Bengaluru; Editing by Krishna

Chandra Eluri and Varun H K)