In a landmark move set to reshape the global polyolefins industry, Abu Dhabi National Oil Company (ADNOC) and Austria’s OMV have unveiled plans to merge their stakes in Borouge and Borealis, forming Borouge Group International. The newly created entity will not only unite two of the sector’s leading players but will also acquire Nova Chemicals for $13.4 billion, solidifying its status as the fourth-largest polyolefins producer worldwide. Borouge Group International, with headquarters in Vienna and regional leadership in Abu Dhabi, will operate under a joint control structure, with ADNOC and OMV each holding a 46.94% stake. To ensure equal ownership, OMV will inject €1.6 billion in cash. The remaining 6.12% will be publicly traded on the Abu Dhabi Securities Exchange (ADX), pending regulatory approvals. With a robust production capacity of 13.6 million tons per annum, the new entity is poised to capitalize on its premium product portfolio, advanced technologies, and strategic global footprint spanning Europe, the Middle East, and North America. The planned recontribution of Borouge-4, expected by 2026 at a cost of $7.5 billion, will be a key driver of future growth.
Beyond scale, the merger promises significant financial benefits. Borouge Group International is projected to generate annual synergies of approximately $500 million, strengthening its margin profile and enhancing shareholder returns. Its dividend policy ensures a minimum payout of 16.2 fils per share, representing a 2% increase over Borouge’s 2024 dividend target. The deal also aligns with ADNOC’s broader chemicals strategy, positioning Abu Dhabi as a global leader in high-value polymer production. His Excellency Dr. Sultan Ahmed Al Jaber, ADNOC’s Managing Director and Group CEO, described the move as a “pivotal milestone, ” reinforcing the company’s commitment to international expansion and innovation. Borouge Group International aims to raise $4 billion in primary capital in 2026, enhancing its financial strength and securing investment-grade credit ratings. The merger’s completion, expected in the first quarter of 2026, is subject to regulatory approvals. With sustainability at its core, Borouge Group International will prioritize circular solutions, building on the decarbonization efforts of its founding companies. As ADNOC transfers its stake to XRG, the company remains committed to unlocking the full value of this transformative industry leader.