ADNOC and OMV Plan $30 Billion Merger with Nova Chemicals Acquisition

Recent reports indicate that Abu Dhabi National Oil Company (ADNOC) and Austrian energy firm OMV are in discussions to merge their plastics businesses and acquire Canadian plastics producer Nova Chemicals. This acquisition is the result of ongoing negotiations aimed at consolidating their polyethylene operations, potentially creating a chemical giant valued at over $30 billion.

In a statement released last Saturday, ADNOC confirmed that it is engaged in “constructive and positive” talks with OMV regarding the merger of their plastic production. The Mubadala Investment Company, a sovereign wealth fund based in Abu Dhabi and the owner of Nova Chemicals, is also involved in the discussions. The merged entity would benefit from access to technology and low-cost raw materials. Both companies noted that the proposed acquisition could involve integrating the operations of Borealis, Borouge, and Nova Chemicals.

Since 2023, ADNOC and OMV have been exploring the merger of Borouge and Borealis, aiming to establish a chemical group with annual sales exceeding $20 billion. Borealis is 75% owned by OMV and 25% by ADNOC, while Borouge is a joint venture between ADNOC and Borealis, with ADNOC holding 54% and Borealis 36%.

In 2024, ADNOC acquired a 24.9% stake in OMV from Mubadala, increasing its holdings in Borouge and Borealis, although the financial terms of this transaction were not disclosed. The potential acquisition of Nova Chemicals will require approval from various corporate bodies, including OMV's executive and supervisory boards. If successful, this move will significantly enhance the global reach and capabilities of the merged polyethylene group.