BAKU, Azerbaijan, March 5. Abu Dhabi National Oil Company (ADNOC) and OMV Aktiengesellschaft (OMV) have formalized terms for the combination of their shareholdings in Borouge plc and Borealis AG, Trend reports.
The partnership includes a share purchase agreement (SPA) with Nova Chemicals Holdings GmbH, owned by Mubadala Investment Company, to acquire Nova Chemicals Corporation, a leading North American polyethylene producer, for $13.4 billion, including debt.
The deal, which also includes the integration of Borouge-4, aims to form a new global polyolefins leader valued at over $60 billion. The merger, when finalized, will make the combined company the fourth-largest in polyolefins production capacity globally. This acquisition will expand ADNOC’s and OMV’s presence in North America, with Nova’s polyethylene and ethylene capacities of 2.6 million metric tons and 4.2 million metric tons, respectively.
Headquartered in Austria with regional hubs in the UAE, Calgary, Pittsburgh, and Singapore, the new entity, Borouge Group International, will be listed on the Abu Dhabi Securities Exchange (ADX), pending regulatory approval. ADNOC and OMV will each hold a 46.94% stake, with the remaining shares in free float.
The new company, with a combined production capacity of 13.6 million tons per annum, will focus on leveraging innovative technologies, competitive feedstock, and strong market access. It is expected to raise up to $4 billion in primary capital in 2026 to support MSCI index inclusion and maintain a strong credit rating.
The merger is also expected to generate significant operational and commercial synergies, unlocking an estimated $500 million in additional EBITDA by 2026. Borouge Group International aims to lead in the circular economy, building on sustainable polyolefin solutions. Both Borealis and Borouge have committed to achieving net-zero emissions by 2050, and Borouge Group International will continue this sustainability strategy post-merger.
The combination is slated to be completed in Q1 2026, pending regulatory approvals. Upon completion, ADNOC’s stake in Borouge Group International will transfer to XRG, which will support the company’s global chemicals strategy.