$40 Billion Merger Creates New Polyolefins Giant

On March 4, 2025, the Abu Dhabi National Oil Company (ADNOC) and OMV Aktiengesellschaft announced a binding framework agreement for a significant merger involving Borouge plc and Borealis AG. This merger will form the Borouge Group International, which will acquire Nova Chemicals Corporation. The completion of this ambitious deal is expected in the first quarter of 2026, creating a new global leader in the polyolefins sector valued at over $60 billion.

The newly formed entity will rank as the fourth-largest polyolefins producer in the world, boasting an impressive annual capacity of 13.6 million tons across Europe, the Middle East, and North America. The acquisition involves a $13.4 billion purchase of Nova Chemicals, which is a leading polyethylene producer in North America with a capacity of 2.6 million tons of polyethylene and 4.2 million tons of ethylene.

Additionally, the Borouge-4 project, with an estimated $7.5 billion investment, is poised to become a key growth driver for the new company. This merger is expected to generate approximately $500 million annually in synergies, contributing to a dividend growth of at least 2% per share for shareholders.

With plans to establish its headquarters in Austria and a regional hub in the UAE, Borouge Group International aims to lead in the circular economy solutions while maintaining a commitment to sustainability, targeting net-zero emissions by 2050.