Signed agreement anticipate strategic combination of Borealis and Borouge beneath the recently generated enterprise Borouge Group International, settle down to end up world’s fourth largest polyolefins enterprise
OMV and ADNOC nowadays declared the signing of a binding agreement for the combination in their shareholdings in Borealis and Borouge into Borouge Group International.
ADNOC has also entered in a share buy settlement with Nova Chemicals Holdings GmbH, an directly fully owned enterprise of Mubadala Investment Company P.J.S.C. For a 100% of Nova Chemicals for an enterprise charge of USD 13.4 billion. ADNOC and OMV have moreover agreed that upon completing touch of the combination, Borouge Group International will acquire Nova Chemicals further growing its footprint in North America.
Once absolutely operational, Borouge 4 is visualized to be retransferred to Borouge Group International at the give up of 2026 at charge, calculated to be approximately about US$ 7.5 billion. When mixed, the three extremely complementary world-elegance enterprises will make the fourth-largest global polyolefin institution with same shareholdings by using OMV and ADNOC.
The acquisition of Nova Chemicals, a North American-primarily based polyolefin manufacturer and a pacesetter in superior packaging solutions and exclustive technology, will in addition pork up Borouge Group International’s sight across the Americas and growth its exposure to advantaged feedstock. Borouge Group International can be uniquely located to generate cost and generate advanced through-cycle shareholder returns, supported by way of the use of synergies and a robust pipeline of natural growth ventures.
Alfred Stern, Chairman of the Administrative Board and Chief Administrative Officer of OMV, stated: “These landmark transactions represent a momentous step for OMV. They will boost up our increase approach in Chemicals and help OMV’s transformation into an included sustainable chemical compounds, fuels, and power enterprise. Together with ADNOC, our strategic associate of 25 years, we are growing a global polyolefins chief, highly placed for value introduction by gaining access to the most important and maximum rate advantaged markets. We aim to significantly growth the profits volumes of progressive polyolefin top rate merchandise and be at the vanguard of renewable and round financial system solutions. Together, OMV and ADNOC will construct on a flexible and future-proof product portfolio and track large organic growth opportunities. Most importantly, these days settlement secures material synergies and long-time period sustainable cost introduction for OMV’s shareholders. ADNOC and OMV have already examined that we are stronger together. We are satisfied that we can release advanced shareholder charge on our joint path forward.”
Dr. Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO, stated: “These transformative transactions mark a crucial milestone in ADNOC’s worldwide chemicals method as we supply on our worldwide boom mandate. Building on our 25-year strategic partnership with OMV, we are able to make a new enterprise powerhouse, with a portfolio of top price products, modern technologies and global marketplace get entry to. The visionary combination of Borouge and Borealis and acquisition of Nova Chemicals, further future-proofs ADNOC and solidifies Abu Dhabi’s status as a pacesetter inside the chemicals region, as we are seeking to fulfill the growing worldwide demand for chemical compounds and associated products, even as driving cost advent and increase opportunities for our shareholders.”
Under the terms of the transactions, Borealis and Borouge may be combined, with OMV injecting EUR 1.6 billion in cash – to be reduced with the support of dividends paid out until completion – into Borouge Group International to balance shareholdings.
The NOVA Chemicals transaction might be funded via acquisition debt, this is a anticipated to be refinanced in the capital markets. The valuation implies an Enterprise Value to EBITDA more than one of around 7.5 at the idea of an anticipated the-cycle EBITDA of US$ 1.8 billion.
The completion touch of the all-share combination of Borealis and Borouge and acquisition of Nova Chemicals is anticipated in Q1 2026, task to regulatory approvals and standard last conditions.
