Adnoc and OMV Explore Potential Merger to Form $30 Billion Chemicals and Plastics Company
July 7, 2023Abu Dhabi National Oil Company (Adnoc) and Austrian energy company OMV are reportedly considering a merger of their respective entities, Borouge and Borealis, to create a chemicals and plastics company valued at over $30 billion. Borealis, predominantly owned by OMV, and Borouge, a joint venture between Adnoc and Borealis, could combine their operations to enhance competitiveness and capitalize on the growing demand for chemicals and plastics in Asia. The discussions, which have been ongoing intermittently, involve deliberations on the merged company’s valuation, ownership structure, and potential advantages. However, obstacles related to these factors could still impact the final outcome, given the involvement of multiple parties.