Abu Dhabi National Oil Company (ADNOC), one of the world’s major oil and gas companies, has entered into formal negotiations with OMV AG (OMV), an Austrian multinational integrated oil, gas and petrochemical company, about the potential creation of a new combined petrochemicals holding entity, through the proposed merger of their respective existing shareholdings in Borouge plc (Borouge) and Borealis AG (Borealis).

Borouge is listed on the Abu Dhabi Securities Exchange (ADX) with 54 percent owned by ADNOC, 36 percent by Borealis, and 10 percent held by retail and institutional investors. Borealis is owned 75 percent by OMV with ADNOC holding 25 percent.

ADNOC is undertaking these negotiations as the majority shareholder of Borouge, and OMV as the majority shareholder in Borealis, with any final decision subject to Borouge’s, and other relevant parties’, governance processes.

The potential merger would mark the next transformative milestone in ADNOC’s ongoing value creation and chemicals growth strategy, with any transaction subject to customary regulatory clearances. ADNOC will provide further material updates as and when appropriate.

Borouge is a leading provider of innovative, value-creating plastics solutions. A joint venture between the ADNOC & Borealis, Borouge is a groundbreaking at the forefront of the next generation of plastics innovation.

Building on the unique Borstar and Borlink technologies and over 50 years of experience in polyolefins, Borouge provides innovative, sustainable and value-creating plastics solutions for infrastructure (pipe systems, and power and communication cables), automotive and advanced packaging applications that address global challenges such as climate change, food protection, access to fresh water, energy conservation, healthcare and waste management.