Abu Dhabi National Oil Company (ADNOC) has entered talks with Austria's OMV for combining some of their assets to create a chemicals giant.
In a statement released on national news agency WAM, ADNOC confirmed it has entered into formal negotiations with OMV about the potential creation of a new petrochemicals holding entity, through the proposed merger of Borouge and Borealis.
Borouge is listed on the Abu Dhabi Securities Exchange with 54 per cent owned by ADNOC, 36 per cent by Borealis, and 10 percent held by retail and institutional investors. Meanwhile, Borealis is owned 75 per cent by OMV with ADNOC holding 25 per cent.
ADNOC is undertaking these negotiations as majority shareholder of Borouge, and OMV as majority shareholder in Borealis, with any final decision subject to Borouge’s, and other relevant parties’, governance processes.
The potential merger would mark the next transformative milestone in ADNOC’s ongoing value creation and chemicals growth strategy, with any transaction subject to customary regulatory clearances.
ADNOC said more details will be released as and when the negotiations are completed.
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