February 3, 2025 13:52

The proposed merger of polyolefins operations between Austrian group OMV and UAE-based ADNOC, currently under discussion, could expand to include Canadian polyethylene producer Nova Chemicals, which would join Borealis and Borouge.

The integration could take place, according to OMV and ADNOC, through the acquisition of Nova Chemicals, currently owned by Mubadala Investment Company, Abu Dhabi's sovereign wealth fund, via its subsidiary International Petroleum Investment Co. (IPIC).
"Negotiations are ongoing in a constructive and positive manner," the companies stated in a release, "subject to respective agreements, regulatory approvals and customary closing conditions."

Borealis is one of Europe's leading producers of polyolefins and basic chemicals. It employs 6,000 people globally and recorded sales of €7.2 billion in 2023, with net profits of €216 million. The company is 75% owned by OMV and 25% by ADNOC.

Borouge produces polyolefins and intermediates at an integrated hub in Ruwais, United Arab Emirates, currently in its fourth phase of expansion. Headquartered in Abu Dhabi, the company is 54% owned by ADNOC, 36% by Borealis, with the remaining 10% publicly traded.

Headquartered in Alberta, Canada, Nova Chemicals produces ethylene and polyethylene, with production capacities of 3.6 million and 1.6 million tonnes, respectively. In 2023, the company reported sales of $3.3 billion and employs around 2,500 people.

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