Part of ADNOC’s global chemicals strategy, the partnership with OMV will create a new industry powerhouse, with a portfolio of premium products, cutting-edge technologies and worldwide market access

A major realignment in the global chemicals industry is underway as the Abu Dhabi National Oil Company (ADNOC) and Austria’s OMV agree to merge their stakes in Borouge and Borealis, creating a $60 billion polyolefins powerhouse.

The move, which includes the acquisition of Canadian firm Nova Chemicals, is set to position the new entity as the fourth-largest producer of polyolefins worldwide.

It will reshape the polyolefins landscape, creating a more competitive and resilient industry leader.

Under the agreement, Borouge Group International will be established as the newly combined entity, headquartered in Austria but maintaining key regional bases in the UAE, North America, and Asia.

With ADNOC and OMV each holding equal 46.94 per cent stakes, the structure ensures joint control over what is being billed as a transformational industry player.

NORTH AMERICA EXPANSION

In a bold step to extend its global reach, ADNOC has secured a $13.4 billion deal to acquire Nova Chemicals, a leading polyethylene producer with substantial production capacity in North America.

Upon completion of the merger, Borouge Group International will absorb Nova, solidifying its footprint in a key market and expanding its supply capabilities across multiple continents.

Dr Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO, described the deal as a defining moment for ADNOC’s chemical ambitions.

He said: "These transformative transactions mark a pivotal milestone in ADNOC’s global chemicals strategy as we deliver on our international growth mandate. Building on our 25-year strategic partnership with OMV, we will create a new industry powerhouse, with a portfolio of premium products, cutting-edge technologies and worldwide market access."

GROWTH STRATEGY

With an expected annual polyolefins production capacity of 13.6 million tonnes, Borouge Group International aims to be a leader in premium polymer products.

Underscoring the strategic importance of the deal, Alfred Stern, OMV CEO, said: "Together with ADNOC, our strategic partner of 25 years, we are creating a global polyolefins leader, exceptionally positioned for value creation by accessing the largest and most cost-advantaged markets."

The company also plans to raise $4 billion in primary capital by 2026, seeking inclusion in the MSCI index and reinforcing its investment-grade credit rating.

Beyond sheer scale, Borouge Group International is set to prioritise sustainability, building on existing initiatives within Borealis, Borouge, and Nova.

The new entity has committed to ambitious circular economy goals, with both Borealis and Borouge already targeting net zero Scope 1 and 2 emissions before 2050.

The merger and Nova acquisition are expected to be finalised by early 2026, pending regulatory approvals.

Upon completion, ADNOC’s stake will be transferred to its chemicals investment arm, XRG, integrating the new giant into its broader global chemicals strategy.