ADNOC and OMV Aktiengesellschaft confirmed continued progress towards establishing Borouge Group International AG, highlighted by the execution of an Asset Usage Agreement for the Borouge 4 (B4) production complex.
The creation of Borouge Group International AG—through the integration of Borouge Plc and Borealis, alongside the acquisition of Nova Chemicals—is advancing as planned. The transactions are anticipated to close by the end of March 2026, subject to standard regulatory and closing conditions.
Borouge 4 represents a next-generation integrated polyolefins complex, featuring a 1.5 million tonne ethane cracker and 1.4 million tonnes of polyethylene capacity. The first production unit is expected to commence operations this quarter. Leveraging advanced Borstar® technology to manufacture premium-grade polyethylene, B4 is owned 70% by ADNOC and 30% by OMV. It forms part of the broader Borouge site, which is on track to become the world’s largest single-location polyolefins complex.
Under the Agreement, Borouge Plc—and subsequently Borouge Group International AG—will assume responsibility for operating and commercialising B4 output in exchange for an at-cost asset utilisation fee. The structure is designed to enhance financial flexibility while generating an estimated USD400 million in cumulative net profit over the next three years. This equates to roughly 10% annual earnings accretion for Borouge Plc post ramp-up. The Agreement is expected to remain in place until Borouge Group International AG acquires the asset, which is not currently anticipated before 2029, thereby offering flexibility in future capital deployment.
Production at B4 is set to scale progressively through 2026. Following the Agreement, Borouge Group International AG will gain access to a combined nameplate capacity of 13.6 million tonnes across Europe, the Middle East, and North America. This positions the company as the fourth-largest global polyolefins producer, with the combined entity expected to sustain industry-leading margins and unlock substantial synergies.
Strong credit profile underpins capital structure
Borouge Group International AG is projected to secure credit ratings of A (Negative) from S&P, Baa1 (Stable) from Moody’s, and A- (Stable) from Fitch, underscoring its robust financial standing and disciplined capital framework. Both ADNOC and OMV remain committed to preserving investment-grade ratings for the new entity.
The combined platform will offer significant geographic diversification across three continents, enabling Borouge Group International AG to serve a broad international customer base. This global footprint, supported by long-term shareholders and a resilient capital structure, is expected to enhance stability across market cycles while supporting sustained value creation.
ADNOC and OMV also reiterated the strategic importance of the previously announced tender offer aimed at simplifying the corporate structure and unlocking value from the integrated global platform. The proposed conversion of Borouge Plc shares into Borouge Group International AG shares will be aligned with the company’s future equity raise to optimise shareholder value.
