According to Cailian News on March 4, Abu Dhabi National Oil Company (ADNOC) of the United Arab Emirates and Austrian energy giant OMV announced that they would inject their polyolefin assets into a new company, Borouge Group International. 1. The details are as follows:

Table of Contents

According to Cailian News on March 4, Abu Dhabi National Oil Company (ADNOC) of the United Arab Emirates and Austrian energy giant OMV announced that they would jointly inject their polyolefin assets into a new company - Borouge Group International. 1. The details are as follows:

Merger content

Asset injection: OMV's Borealis division (Northern Europe Chemicals) and ADNOC's Borouge will both be merged into the new company, and OMV will also inject 1.6 billion euros in cash into the new company. At the same time, the new company will jointly acquire Canadian plastics producer Nova Chemicals, which is wholly owned by Abu Dhabi sovereign investment institution Mubadala, for US$13.4 billion (including debt). Nova is one of the largest polyethylene producers in North America with an annual production capacity of over 5 million tons.

Company structure

Headquarters: Borouge Group International's headquarters will be located in Vienna, Austria, and a regional headquarters will be established in Abu Dhabi. The company will be listed in Abu Dhabi and plans to be listed on the Vienna Stock Exchange in the future.

Equity distribution: The new company is jointly controlled by the two companies, each holding 46.94% of the shares. However, after the completion of the reorganization, ADNOC will transfer the ownership of the new company to its investment platform XRG.

Significance of the merger

Improve competitiveness: The two parties will join forces to improve market competitiveness and reduce operating costs through synergy. In addition, this integration will also integrate Nova Chemicals, whose technological advantages complement the global layout of OMV and ADNOC.

Realize resource integration and market expansion: By integrating the businesses of Borealis, Borouge and Nova Chemicals, the merged company will have the most complete polyolefin industry chain in the world, covering everything from raw material supply to end products.