Borouge stake acquisition announced forms the foundation of one of the most significant transformations in the global petrochemical industry. Abu Dhabi National Oil Company (ADNOC) and Austria’s OMV have agreed to combine their Borouge and Borealis businesses to establish Borouge Group International, a global polyolefins leader valued at over 60 billion dollars.
ADNOC and OMV to Hold Equal Stakes
Under the terms of the transaction, ADNOC and OMV will hold a 46.94 percent stake each in the newly created Borouge Group International, maintaining joint control of the venture. The remaining 6.12 percent will constitute free-float shares, ensuring continued public investment participation. This balanced ownership structure reflects both partners’ long-term strategic commitment to growth, innovation, and sustainability within the polyolefins market.
Expanding Global Production Capacity
The merger will give the new entity an annual production capacity of around 13.6 million tons, positioning it as the world’s fourth-largest polyolefins producer. The combined strength of Borouge in the Middle East and Borealis in Europe, supported by the planned acquisition of Nova Chemicals in North America for 13.4 billion dollars, will create a truly global footprint across major industrial and consumer markets.
Borouge Group International will be headquartered in Vienna, Austria, with regional offices in the United Arab Emirates and other key markets. This strategic network is expected to strengthen its presence in Europe, Asia, and North America, improving supply chain integration and market reach.
Synergies and Capital Growth Plans
The newly formed group is targeting over 500 million dollars in synergy value, driven primarily by cost optimization and operational efficiencies. According to the companies, roughly 75 percent of these synergies are expected to be realized within three years of the transaction’s completion.
To support its ambitious growth plans, Borouge Group International is preparing to raise up to 4 billion dollars in primary capital. The company aims to preserve a robust investment-grade credit rating to enhance access to international financing and sustain long-term expansion.
In line with ADNOC’s evolving portfolio strategy, its stake in the new entity will be transferred to XRG, the company’s dedicated chemicals and energy platform. This move reflects ADNOC’s goal to strengthen XRG’s global chemicals leadership and advance its integration across energy and industrial sectors.
Completion Timeline and Expansion Projects
The Borouge stake acquisition and business combination are expected to close by the first quarter of 2026, subject to regulatory approvals. Meanwhile, the Borouge-4 expansion project in the UAE remains a major growth driver. Scheduled for completion by the end of 2026, the 7.5 billion dollar project will significantly increase production and deliver substantial EBITDA contributions once operational.
A New Era for Petrochemical Leadership
The creation of Borouge Group International marks a defining moment for the petrochemical sector. By bringing together the complementary strengths of Borouge, Borealis, and Nova Chemicals, ADNOC and OMV are establishing a comprehensive platform that spans innovation, sustainability, and global market reach. This strategic consolidation reflects both companies’ vision to capture new value across the energy and chemicals value chain while enhancing competitiveness through integrated operations and technology-led solutions.
With shared control, a clear growth roadmap, and a balanced global presence, the Borouge stake acquisition signals a new era of industrial collaboration in the petrochemical industry, positioning ADNOC and OMV at the forefront of global polyolefins production for years to come.
