OMV and ADNOC: Mega fusion in the plastic sector decided!
OMV and ADNOC: Mega fusion in the plastic sector decided!
The Austrian oil and gas group OMV and its major shareholder ADNOC from Abu Dhabi have made a groundbreaking agreement to merge their petroche daughters Borealis and Borouge. This was announced on Monday. The merger is to be carried out under the name Borouge Group International as a joint venture, in which both OMV and ADNOC are involved in an equal footing. At the same time, the agreement on the purchase of Nova Chemicals was announced for 9.4 billion euros. According to krone.at , a new chemical giant was created through years of negotiations, which will be among the top 5 in the plastic industry.
The plastic production by boralis and borouge includes polyolefins that are used in 40 percent of all plastics, for example in cables, pipes, packaging and medical devices. So far, Borealis has mainly worked in Europe, while Borouge focused on Asia and Africa. The joint venture will also serve as a platform for future growth acquisitions in the polyolefin sector, such as omv.com
Financial framework and future steps
In order to finance the takeover of Nova Chemicals, bridge financing of up to $ 4 billion is initiated, although OMV and ADNOC are not directly involved. This could lead to an increase in the free float of the joint venture. It is expected that the contractual documents that determine the general conditions for this merger will still be signed today. The headquarters of the new company are said to be located in Austria, and a later list of stockings on the Abu Dhabi Securities Exchange and on the Viennese stock exchange is planned.
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| Ort | Österreich |
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