Petrochemical Merger Deal between OMV and ADNOC is moving forward as both companies proceed with creating Borouge Group International (BGI). The new entity will combine Borealis and Borouge and acquire Nova Chemicals for $13.4 billion, positioning BGI as the world’s fourth-largest polyolefins producer once the transaction closes.
New Entity Structure
BGI will be headquartered in Vienna and jointly owned by OMV and ADNOC, each holding 46.94%. The remaining 6.12% will be offered as free float during a future public listing. The operational integration includes Borouge Plc, Borealis, and Nova Chemicals, forming a company with more than $60 billion in enterprise value.
Acquisition Details
The merger includes the full combination of Borealis and Borouge operations under BGI. The $13.4 billion acquisition of Nova Chemicals strengthens the new group’s production capacity and market reach across North America, Europe, and the Middle East. The partners have confirmed that the merger transaction remains on track to close by the end of March 2026.
Listing Delay to 2027
The planned public listing on the Abu Dhabi Securities Exchange has been delayed until at least 2027. Executives pointed to ongoing market volatility influenced by geopolitical tensions in the Middle East and persistent pressure on the global chemicals sector. They also highlighted continued overcapacity in Asia, which has affected investor sentiment and made the original listing timeline too risky.
Strategy for 2026
BGI will remain privately held throughout 2026. During this period, the company plans to raise up to $1 billion in capital to strengthen liquidity. Dividend payouts have been reduced as part of a broader plan to maintain a solid balance sheet ahead of the future listing. The integration of the Borouge 4 expansion project into BGI is also underway, further increasing production scale.
Outlook
Despite the listing delay, both OMV and ADNOC have confirmed that operational progress continues without disruption. The companies expect BGI to play a central role in their long-term petrochemicals strategy, supported by strong demand fundamentals and large-scale production assets. The partners view the combined platform as well-positioned to navigate current market challenges while preparing for public listing when conditions improve.
