ADNOC plans merge of petrochemicals entities

ABU DHABI, July 18, 2023 – ADNOC and Austria’s OMV have entered into formal negotiations to merge the petrochemicals companies Borouge and Borealis, the Emirati NOC announced on Saturday.

The new petrochemicals holding entity would have sales of around USD 20 billion per year.

ADNOC currently has a 54% stake in Borouge with Bourouge holding a 36% stake and retail and institutional investors holding the remaining 10% stake.

Borealis is owned by both OMV and ADNOC with 75% and 25% shares respectively.

The plan follows ADNOC’s goal to diversify its revenue sources away from oil and gas operations.

“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,” said Alfred Stern, CEO of OMV.

ADNOC holds a 24.9% stake in OMV, which it acquired from Mubadala Investment Company in December 2022.