OMV enters talks with ADNOC to form global chemical giant

OMV enters talks with ADNOC to form global chemical giant

Austria’s OMV is entering talks with Abu Dhabi National Oil Company (ADNOC Group) about combining some of their assets to create a chemicals and plastics giant. OMV’s executive board decided to pursue negotiations with state-owned ADNOC about a potential merger of Borouge and Borealis, it said in a statement Friday, confirming a report. They would combine the operations to become equal partners in a listed entity that will be a global player in the polyolefin market, according to the statement. Vienna-headquartered Borealis is 75 per cent owned by OMV, with the remainder held by . Abu Dhabi-listed Borouge is itself a partnership between ADNOC and Borealis and has a market value of about $22bn. Bloomberg News reported earlier this month that and ADNOC were discussing the valuation and ownership structure for the potential deal and could reach the broad outlines for formal negotiations in the coming weeks. The combined company could be worth more than $30bn. The merged entity could provide a platform for further acquisitions, according to Friday’s statement. OMV sees a “strong and compelling industrial logic” in a potential deal, CEO Alfred Stern said in the statement. Combining the two businesses would let Borealis tap cheap feedstock and