UAE Edition 
Egypt Edition 
Saudi Edition 
MENA <> India Corridor 
Logistics (MENA) 
Climate (MENA) 
Share
Read Full Issue 
Adnoc and Austria-based OMV are looking to acquire Mubadala’s Nova Chemicals to merge it with their polyolefin businesses in a bid to establish a global polyolefin group, according to a joint statement. There’s still no publicly available information about the size of the potential stake Adnoc and OMV aim to secure in Nova Chemicals from Mubadala, nor about the financial terms, structure, timeline, or the advisors working on the transaction.
Background: Adnoc and OMV announced in July 2023 their plan to merge their plastic units — Borouge and Borealis — in a JV potentially worth over USD 30 bn, though the merger has seen delays due to changes in management, the elections in Austria last year, and some sticking points related to the technicalities of the merger. Adnoc confirmed on Saturday that negotiations with OMV about the potential merger were ongoing in a separate statement. It is worth noting that Adnoc owns 24.9% of OMV as of March 2024. Adnoc holds a 25% stake in Borealis, and a 54% stake in Borouge, while Borealis holds a 36% stake in Borouge.
IN CONTEXT- The potential merger would create an industry giant by combining Adnoc and Borouge’s strong presence in the Middle East and Asia with OMV’s and Nova Chemicals’ established operations in Europe and North America. This would create a more integrated global supply chain for the companies and enhance marketing and sales channels across key regions. The merger also comes as both Adnoc and OMV look to expand their chemicals businesses in a shift away from oil and gas.
Uh, Enterprise, what is polyolefin? Polyoelfin is one of the most widely used plastics in the world. It is a lightweight, durable, chemically resistant, and recyclable thermoplastic used in the production of everything from plastic bags, medical packaging and syringes, to roofing materials and geotextiles for road and soil stabilization. The most common types of polyolefins include polyethylene and polypropylene.
About Nova Chemicals: The Calgary-headquartered company specializes in the development and manufacturing of ethylene, polyethylene, and chemical co-products. Nova Chemicals operates primarily in Canada and the US, with facilities in Alberta, Ontario, Louisiana, and Texas, according to its website.
