OMV and ADNOC have announced their intention to combine the pair's polyolefins businesses. As part of the move, Borealis and Borouge will combine under a new, jointly controlled venture company. The new venture will provide both companies with a platform for potential growth acquisitions within the polyolefins sector, with the envisaged Borouge Group International name.
OMV
OMV and ADNOC reach collaboration agreement.
The two companies have also agreed on key terms and conditions regarding a joint venture purchase of all of NOVA Chemicals’ shares. OMV and ADNOC will purchase the shares from Nova Chemicals Holding GmbH, a subsidiary of Mubadala Investment Company PJSC, for $9.337 billion. ADNOC will be the named purchaser in the agreement, but following specific regulatory and other conditions being met, this will be novated to a subsidiary of the joint venture company.
Both companies will have equal shareholdings and control regarding the joint venture company. OMV is expected to make a capital injection into the company of €1.608 billion. This is then expected to be reduced by dividends paid out until the completion of the transaction, which is expected in 2026.
The proposed Borouge Group International will have its headquarters in Austria. While the appointment of the chairperson of the supervisory board will be ADNOC’s responsibility, the Executive Board will be appointed by both parties based on merit.