Abu Dhabi National Oil Company (ADNOC) has officially announced its commencement of formal negotiations with OMV AG to explore the possibility of creating a new combined petrochemicals holding entity. The proposed merger aims to integrate their respective existing shareholdings in Borouge plc and Borealis AG.
Currently, Borouge is listed on the Abu Dhabi Securities Exchange (ADX) with ADNOC holding a majority ownership of 54%, Borealis owning 36%, and the remaining 10% being held by retail and institutional investors. On the other hand, Borealis is primarily owned by OMV, with OMV holding 75% of the shares, and ADNOC possessing a 25% stake.
The negotiations are being carried out with ADNOC as the majority shareholder of Borouge and OMV as the majority shareholder of Borealis. However, any final decision is subject to the governance processes of Borouge and other relevant parties.
This potential merger represents a significant milestone in ADNOC’s ongoing efforts to create value and achieve growth in the chemicals sector. As with any major transaction, the proposed merger will be subject to customary regulatory clearances.
ADNOC has expressed its commitment to provide further updates as necessary, keeping stakeholders informed about the progress of the negotiations.