14-07-2023
OMV to pursue negotiations with ADNOC on potential cooperation regarding their polyolefins businesses
The Executive Board of OMV has just decided to pursue negotiations with ADNOC on a potential cooperation with respect to their polyolefins businesses. Such cooperation would include a potential combination of the Borealis and Borouge businesses as equal partners under a jointly controlled, listed platform for potential growth acquisitions to create a global polyolefin company with a material presence in key markets.
Borealis is one of the world’s leading providers of advanced and sustainable polyolefins solutions and a European front-runner in polyolefins recycling. Borealis is owned 75 per cent by OMV and 25 per cent by ADNOC. Borouge is a leading petrochemical company that provides innovative and differentiated polyolefin solutions. Borouge is owned 54 per cent by ADNOC, 36 per cent by Borealis with the remainder listed on the Abu Dhabi Securities Exchange (“ADX”).
“This potential transaction would have a strong and compelling industrial logic,” said Alfred Stern, Chairman of the Board and CEO of OMV AG. “Combining the two complementary businesses would bring together Borealis’ technological expertise, and specialty and sustainable polyolefins solutions, with Borouge’s advantageous cost position and access to attractive markets, that would create a new global polyolefin powerhouse with significant organic and inorganic growth potential.”
“This would build on more than 25 years of successful partnership with ADNOC and be one of the possible catalysts to achieve OMV’s Strategy 2030. At the same time, there are a number of transaction parameters that are subject to mutual agreement during the negotiation,” he added.
Any potential transaction would be in line with OMV’s stated acquisition criteria and capital allocation framework. Further announcement will be made as and when appropriate.
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