ADNOC and OMV Plan $30 Billion Merger to Create Global Chemical Powerhouse

Abu Dhabi National Oil Company (ADNOC) and Austrian energy firm OMV have announced plans to merge their plastics businesses and acquire Canadian plastic producer Nova Chemicals. This strategic move aims to consolidate their polyolefin operations, potentially forming a global chemical giant valued at over $30 billion.

The merger will integrate the operations of Borealis, Borouge, and Nova Chemicals, optimizing resource allocation and enhancing access to technology and raw materials. The Mubadala Investment Company, a sovereign wealth fund based in Abu Dhabi and the current owner of Nova Chemicals, is also involved in the negotiations.

ADNOC stated in a press release that discussions with OMV have been “constructive and positive,” emphasizing that the combined entity will benefit from significant cost advantages and enhanced market competitiveness.

Currently, ADNOC and OMV operate in Canada and Louisiana, USA, and this merger is expected to further boost their presence in the U.S. market while facilitating access to abundant natural gas resources.

This merger is the culmination of ongoing discussions between ADNOC and OMV since 2023. OMV holds a 75% stake in Borealis, while ADNOC owns 25%. Additionally, Borouge is a joint venture between ADNOC and Borealis, with ADNOC holding 54% and Borealis owning 36%. In 2024, ADNOC acquired 24.9% of OMV, enhancing its stake in both Borealis and Borouge.

If successful, the new company is set to become a leader in the global polyolefins sector, leveraging strong technical expertise, market channels, and sustainable solutions to drive further integration and growth within the global chemical industry.