Prime Highlights
⦁ Abu Dhabi National Oil Company and OMV are progressing toward forming a new global petrochemicals company.
⦁ The combined entity aims to expand global reach and strengthen presence across key chemical markets.
Key Facts
⦁ Borouge and Borealis will form the core of the new group, with both firms bringing production, technology, and market access.
⦁ The company will focus on polyolefins, a type of plastic used in packaging, automotive parts, and consumer goods, making it a key material for many industries.
Background
Abu Dhabi National Oil Company (ADNOC) and Austria’s OMV are in the final stages of forming Borouge Group International AG (BGI), a combined chemicals business that will rank among the largest polyolefins producers in the world. The deal, which brings together Borouge, Borealis, and Nova Chemicals, is expected to close by the end of March 2026.
The deal brings together Abu Dhabi-listed Borouge, Europe’s Borealis, and Nova Chemicals to form the new combined entity. ADNOC will hold the same 46.94% stake in Borealis Investment Group (BIG) as OMV, of 6.12% will be floated in the public domain at the Abu Dhabi Securities Exchange. Subject to customary conditions, the deal is expected to close by the end of March 2026.
A significant part of the announcement is the Borouge 4 (B4) production complex in Abu Dhabi. B4 is a new integrated facility with a 1.5-million-tonne ethane cracker and 1.4-million-tonne polyethylene capacity, with its first plant expected to start up this quarter. It is 70% owned by ADNOC and 30% by OMV, and will form part of what is set to become the world’s largest single-site polyolefins complex.
Both companies have signed an asset usage agreement allowing BGI to operate and market B4 volumes. Once B4 ramps up, BGI will have access to 13.6 million tonnes of nameplate production capacity across Europe, the Middle East, and North America.
On the financial side, the partners have made one key near-term adjustment. As a precaution to strengthen BGI’s balance sheet, BGI’s dividend for 2026 has been reduced to 50% of the initially intended amount, meaning OMV will receive $250 million rather than the previously estimated $500 million.
Upon completion, ADNOC’s stake in BGI will be transferred to and held by XRG, its global energy investment arm, as part of Abu Dhabi’s broader push to build a world-scale chemicals business.
