ADNOC and OMV are negotiating to create a petrochemical giant

The merger of the Austrian Borealis and the Emirati Borouge, a joint venture between ADNOC and OMV, is being discussed.

In 2022, ADNOC acquired a 25% stake in Borealis from the sovereign investment fund of the United Arab Emirates, Mubadala Investment Company, and 75% of the shares unaffected by the transaction were owned by OMV. The market value of Borealis and Borouge is estimated at $10 billion and $22 billion, respectively.

According to one of the possible scenarios, ADNOC and OMV will receive equal shares not exceeding 50%, and the remaining shares will be publicly available and traded on the stock exchange.

The exact cost and ownership structure «remain two key obstacles to an agreement, so the terms may change significantly». In addition, Austrian representatives insist that the company’s headquarters be in Europe, where most operations take place, even if the combined structure is registered in Abu Dhabi. Sources do not exclude that negotiations between ADNOC and OMV may be postponed or even suspended due to disagreements on several issues.