Abu Dhabi National Oil Company (ADNOC) has confirmed ongoing negotiations with Austria’s OMV to establish a new global polyolefins group, combining their stakes in Borouge and Borealis. The proposed deal is expected to create a major international player in the polyolefins sector, positioning ADNOC and OMV as key drivers in the industry.
A Milestone in ADNOC’s Expansion Strategy
In an official statement, ADNOC said discussions are progressing in a “constructive and positive manner”, signaling potential synergies between the companies. The merger would integrate OMV’s Borealis and ADNOC’s Borouge, alongside Canada’s Nova Chemicals, forming one of the world’s leading polyolefin producers.
Polyolefins—primarily polyethylene and polypropylene—are widely used in packaging, automotive, medical, and construction industries. By consolidating operations, ADNOC and OMV aim to enhance efficiency, innovation, and market competitiveness across these sectors.
ADNOC Regulatory Approvals and Market Implications
While negotiations are ongoing, the transaction remains subject to:
- Final agreements between ADNOC and OMV
- Regulatory approvals from relevant authorities
- Customary conditions necessary for deal completion
The merger aligns with ADNOC’s long-term strategy to expand its downstream and petrochemicals portfolio, reinforcing the UAE’s position as a global hub for advanced materials production.
Strengthening UAE-Europe Economic Ties
The partnership would deepen ADNOC’s collaboration with Austria’s OMV, enhancing economic ties between Abu Dhabi and Vienna. Given Europe’s increasing focus on sustainable and circular economies, the deal could also foster greater investment in recyclable and bio-based plastics.
If approved, the ADNOC-OMV merger will mark a significant milestone in global petrochemicals, unlocking new opportunities for technological advancements, supply chain integration, and sustainable polymer solutions. The companies remain committed to maximizing value for shareholders and driving long-term industry growth. The combined entity is expected to leverage advanced manufacturing technologies, expand market reach, and optimize supply chains. Industry analysts predict the deal will boost regional investments and accelerate ADNOC’s sustainable development initiatives.
