OMV and ADNOC have confirmed, in two separate statements, that they are pursuing negotiations on a merger between their respective polyolefins businesses. This would include the potential creation of a new, combined petrochemicals holding entity, with the Borealis and Borouge businesses as equal partners ‘to create a global polyolefin company with a material presence in key markets’, according to OMV.
Borouge is listed on the Abu Dhabi Securities Exchange (“ADX”) with 54% owned by ADNOC, 36% by Borealis, and 10% held by retail and institutional investors. OMV holds 75% of the shares in Borealis, with ADNOC holding the remaining 25%.
OMV, ADNOC enter formal negotiations on Borouge/Borealis merger

Alfred Stern
“This potential transaction would have a strong and compelling industrial logic,” said Alfred Stern, Chairman of the Board and CEO of OMV AG. “Combining the two complementary businesses would bring together Borealis’ technological expertise, and specialty and sustainable polyolefins solutions, with Borouge’s advantageous cost position and access to attractive markets, that would create a new global polyolefin powerhouse with significant organic and inorganic growth potential.”
There are a number of transaction parameters that are subject to mutual agreement during the negotiation, he added.
ADNOC is undertaking these negotiations as the majority shareholder of Borouge, and OMV as the majority shareholder in Borealis.
A potential transaction would, inter alia, be subject to an agreement with ADNOC on the commercial transaction parameters (including, inter alia, the valuation of the involved businesses) and the transaction documents in the upcoming negotiations, as well as to approvals of a potential transaction by the Executive Board and the Supervisory Board of OMV, approvals of a potential transaction by ADNOC, and approvals by authorities such as merger control clearances.
Both companies stated that further material updates will be provided as and when appropriate.