Abu Dhabi – Mubasher: Abu Dhabi National Oil Company (ADNOC) has entered into formal negotiations with Austria’s integrated oil, gas, and petrochemical firm OMV AG to create a new combined petrochemicals holding entity.
The new chemicals and plastics giant will be established through a potential merger of Borouge and Vienna-headquartered Borealis, according to a press release.
ADNOC holds 54% equity ownership in Borouge, while Borealis owns a 36% stake in the ADX-listed firm. Retail and institutional investors hold the remaining 10% shareholding.
Meanwhile, Borealis is 75%-owned by OMV, with ADNOC acquiring 25%.
Subject to regulatory approvals, the potential merger aligns with ADNOC’s ongoing value creation and chemicals growth strategy.
ADNOC pointed out that it will disclose any further material updates regarding the transaction in due course.
In the first quarter (Q1) of 2023, the net profits attributable to the owners of Borouge declined to $198 million from $359 million in Q1-22.
