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After months of intense negotiations, the Abu Dhabi National Oil Co. (Adnoc) and Austria’s OMV AG announced Tuesday the merger of their plastics businesses, forming a $60 billion global heavyweight in polyolefins production. This landmark deal cements the companies' dominance in the petrochemical sector, positioning them as the fourth-largest polyolefins producer worldwide.

A New Powerhouse in Polyolefins

The newly formed entity, Borouge Group International, will be headquartered in Vienna, with regional offices in Abu Dhabi and a listing on the Abu Dhabi Securities Exchange. Polyolefins, a key component in everyday items such as bottles, bags, and construction materials, make up the most widely used category of plastics.

Under the agreement, Adnoc and OMV will each hold a 46.94% stake in the new company, with the remaining 6.12% allocated to other shareholders. As part of the deal, OMV will inject €1.6 billion ($1.7 billion) in cash to balance its shareholding in the merged entity. The merger integrates Adnoc and OMV’s existing stakes in Borouge PLC and Borealis AG, consolidating their influence in the global market.

Expanding Global Footprint with a Major Acquisition

Beyond the merger, Borouge Group International is set to acquire Nova Chemical Corp., a Canadian polyethylene producer, from Abu Dhabi’s sovereign wealth fund Mamoura Diversified Global Holding PJSC for $13.4 billion, including debt. The acquisition further strengthens the company’s footprint in North America, reinforcing its position as a dominant force in global polyolefins manufacturing.

"Borouge Group International will unite the complementary strengths of three polyolefin leaders, leveraging competitive feedstock, premium-quality product offerings, direct access to high-growth markets, cutting-edge technologies, and strong circularity credentials," the companies said in a joint statement.

A Strategic Shift for Abu Dhabi’s Oil Empire

Adnoc’s CEO, Sultan Ahmed Al Jaber, hailed the deal as a transformative step that "solidifies Abu Dhabi’s status as a leader in the chemicals sector." The Gulf region has been increasingly pivoting toward petrochemicals and downstream industries as part of its broader economic diversification strategy.

This isn’t Adnoc’s first major push beyond traditional oil assets. In October, the company inked a $16 billion deal to acquire German chemicals group Covestro AG, signaling its intent to dominate the global chemicals industry.

Closing the Deal

The transactions are expected to close by March 2026, pending regulatory approvals. However, the companies did not disclose which authorities must greenlight the deal. Legal counsel details for the merger were also not immediately available.