According to Amac News, based on the announcement, the new combined company will then acquire North American producer NOVA Chemicals for Dh49.2 billion.
With the inclusion of Borouge 4, Borouge Group International will become an integrated global chemicals powerhouse valued at over Dh220 billion, making it the world's fourth-largest producer of polyolefins.
Borouge Group International will be jointly owned and controlled by ADNOC and OMV, with headquarters in Vienna and Abu Dhabi.
As part of the deal, OMV will inject €1.6 billion (Dh6.1 billion) in cash into the combined company to equal its stake.
Borouge Group International will have best-in-class margins of approximately AED 1.8 billion per annum and will generate dividend growth for existing Borouge plc shareholders, who will own the new company listed on the Abu Dhabi Stock Exchange (ADX).
Borouge Group International will combine the complementary strengths of three international polyolefin leaders – Borouge, Borealis and NOVA – including competitive feedstocks, access to growing markets, world-class technologies and leadership in recyclable products.
The new company will also benefit from complementary product lines, from Borouge’s innovative agro-products to Borealis’ textiles and Nova’s sustainable packaging solutions.
The Borouge 4 development is expected to be transferred to the new company in 2026 at a cost of approximately AED 27.5 billion, making it the world’s fourth largest polyolefin producer with a capacity of 13.6 million tonnes per annum across Europe, the Middle East and North America.
The agreement reinforces the close historical collaboration and strategic partnership between ADNOC and OMV. Upon completion, ADNOC’s stake in Borouge Group International will be transferred to XRG, ADNOC’s international energy investment vehicle.
XRG, which is set to launch in 2024 with an enterprise value of more than $80 billion, is the latest development in ADNOC’s strategy to accelerate international growth and create greater value and will initially focus on projects across the energy spectrum, from gas to chemicals to low-carbon fuels and energy infrastructure.
Polyolefins are durable, lightweight materials widely used in manufacturing and everyday products including packaging, household goods, medical devices and textiles.