Source Credit: Gulf News
Dubai: ADNOC’s joint venture, Borouge, is set to become one of the world’s largest petrochemical players through a strategic merger with Austria’s Borealis and the acquisition of Nova Chemicals for $13.4 billion.
This move will establish Borouge Group International, making it the fourth-largest polyolefins producer globally.
The key highlights are Formation of Borouge Group International: A joint entity between Borouge and Borealis, set to be headquartered in Vienna with regional headquarters in Abu Dhabi, Nova Chemicals Acquisition:
The deal includes taking over Nova Chemicals Corp., a leading North American polyethylene producer with a significant production capacity of 2.6 million metric tons of polyethylene and 4.2 million metric tons of ethylene, IPO and ADX Listing:
The new entity will offer 6.12% of its equity as a free float, subject to regulatory approvals, following Borouge’s successful 2022 IPO, Shareholding Structure: ADNOC and OMV will each hold 46.94% of Borouge Group International, with OMV investing €1.6 billion to equalize shareholding, Dividend Policy:
A minimum payout of 16.2 fils per share, representing a 2% uplift compared to Borouge’s targeted 2024 dividend and Projected Financial Impact: Expected to generate $500 million in annual synergies, enhancing shareholder value and dividend payouts.
Dr. Sultan Al Jaber, ADNOC Managing Director and Group CEO, stated: “The combination of Borouge and Borealis, alongside the Nova Chemicals acquisition, strengthens ADNOC’s global footprint and solidifies Abu Dhabi’s leadership in the chemicals sector.”
The merger and Nova acquisition are expected to be finalized by Q1 2026. Once completed, ADNOC’s stake in Borouge Group International will be transferred to XRG, ADNOC’s dedicated investment arm for natural gas, chemicals, and low-carbon energy solutions.
This strategic move positions Abu Dhabi as a key player in the global petrochemicals industry, expanding its reach into North America and enhancing its competitiveness on the global stage.
