Image: ADNOC
The Abu Dhabi National Oil Company (ADNOC) and Austria’s OMV have agreed to merge their holdings in Borouge and Borealis, forming Borouge Group International, which will acquire North American polyethylene producer Nova Chemicals Corporation for $13.4bn, including debt.
The deal will create a $60bn global polyolefins giant, making Borouge Group International the fourth-largest polyolefins producer by nameplate capacity, with 13.6 million metric tonnes per annum (mtpa) across Europe, the Middle East, and North America.
Strategic expansion and financial structure
ADNOC has signed a share purchase agreement with Mubadala Investment Company’s Nova Chemicals Holdings, acquiring 100 per cent of Nova Chemicals.
The acquisition, combined with the planned recontribution of Borouge-4—set for completion by end-2026 at a cost of $7.5bn — is expected to be a major catalyst for the new entity’s growth.th.
Borouge Group International will be headquartered in Austria, with regional hubs in the UAE, Canada, the US and Singapore.
The company plans a $4bn capital raise in 2026 to secure MSCI index inclusion and maintain an investment-grade credit rating, targeting net leverage of up to 2.5x EBITDA.
ADNOC and OMV will hold equal 46.94 per cent stakes in Borouge Group International, exercising joint control. The remaining 6.12 per cent will be in free float, subject to UAE regulatory approval and shareholder exchanges.
“These transformative transactions mark a pivotal milestone in ADNOC’s global chemicals strategy,” said Dr Sultan Ahmed Al Jaber, ADNOC MD and group CEO. “We are creating a new industry powerhouse, solidifying Abu Dhabi’s status as a leader in the chemicals sector while driving value for shareholders.”
Our MD and GCEO Dr. Sultan Al Jaber on the creation of a ‘new industry titan’ in @Borouge Group International, which is uniquely placed to meet the growing global demand for chemicals.
For more: https://t.co/dUYv8q1pVY
#EnergyForLife pic.twitter.com/wl1XvOlCJj— ADNOC Group (@ADNOCGroup) March 3, 2025
Synergies, dividend policy, and growth prospects
Borouge Group International is expected to generate over $7bn in EBITDA annually, leveraging $500m in synergy potential, with 75 per cent realised within three years.
The company will maintain a 90 per cent dividend payout ratio, targeting a minimum annual payout of 16.2 fils per share, representing a 2 per cent increase over Borouge’s 2024 dividend per share (DPS).
OMV CEO Alfred Stern called the deal a “momentous step” in OMV’s chemicals strategy. “With ADNOC, we are building a global polyolefins leader, enhancing value creation, and accelerating our transition toward circular economy solutions,” he said.
Regulatory approvals and sustainability commitments
The transaction is expected to close in Q1 2026, subject to regulatory approvals and other customary conditions.
Borouge Group International will focus on sustainability and circular solutions, building on initiatives from Borealis, Borouge, and Nova Chemicals.
Both Borealis and Borouge have committed to Scope 1 and 2 net-zero emissions before 2050, with Borouge Group International’s sustainability strategy to be announced post-completion.
ADNOC’s XRG to oversee chemicals strategy
Upon completion, ADNOC’s stake in Borouge Group International will be transferred to XRG, its global chemicals investment arm.
XRG aims to maximise value creation and leverage synergies across the group’s expanding international chemicals portfolio.
Read: ADNOC secures long-term LNG deal with Japan’s Osaka Gas
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