Sector News

Adnoc and OMV weigh options to create $30bn company

July 7, 2023
Chemical Value Chain

Abu Dhabi National Oil Company (Adnoc) and Austrian energy company OMV are weighing options to merge Borouge and Borealis to create a chemicals and plastics entity worth more than $30bn (Dh110bn), reported Bloomberg, citing sources.

Borealis, which has its headquarters in Vienna, is 75% owned by OMV and the remaining 25% by Adnoc.

Meanwhile, Borouge, which has a market value of roughly $22bn, is a joint venture between Adnoc and Borealis and is listed in Abu Dhabi.

According to the sources, the owners are debating the potential value and ownership structure of a merged company and may agree on the basic parameters for formal merger talks in the upcoming weeks.

The talks have been intermittent for several months and could still be delayed or stopped, the sources added.

Borealis, with its investment in Borouge, may be valued at around $10bn by the two parties, the sources said, adding that the merged company may be valued at more than $30bn after potential advantages are factored in.

They noted that the two fundamental obstacles to any agreement are still the specific value and ownership structure, which could change.

Adnoc and OMV representatives refused to comment. Borealis and Borouge representatives directed inquiries to the businesses’ owners.

As per the report, combining the businesses would provide Adnoc and OMV with the scale they need to compete, streamline the ownership structure and offer them greater freedom to spend and grow in Asia, where demand for chemicals and plastics is on the rise.

However, given that there are several parties involved, including governments, a final deal may not be reached.


comments closed

Related News

October 1, 2023

INEOS announces the acquisition of the Eastman Texas City Site for ~$500 million

Chemical Value Chain

The deal includes the 600kt Acetic Acid plant and all associated third party activities on the site. Eastman and INEOS have also entered into a Memorandum of Understanding to explore options for a long-term supply agreement for vinyl acetate monomer.

October 1, 2023

Executive Vice President Lucrèce Foufopoulos-De Ridder to leave Borealis

Chemical Value Chain

The Supervisory Board of Borealis has accepted the decision of Lucrèce Foufopoulos-De Ridder, EVP Polyolefins, Circular Economy Solutions and Innovation & Technology to step down from her executive position at Borealis, and the Board of Borouge Pte effective 31 December 2023 to pursue other career opportunities.

October 1, 2023

Sidel unveils new StarLiteR rPET solution

Chemical Value Chain

Sidel has launched a new 100% rPET bottle base, StarLiteR, aiming to help carbonated soft drink (CSD) packaging producers embrace material circularity. StarLiteR allows CDS producers to switch to rPET bottle production easily and efficiently, while significantly reducing the impact on product quality or packaging integrity.

How can we help you?

We're easy to reach