ADNOC initiates discussions on Borouge-Borealis merger
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Abu Dhabi’s national oil company, ADNOC, has confirmed that it has entered formal talks with OMVAG (OMV) about the possibility of creating a new petrochemical holding through a merger.
ADNOC has offered to merge its existing interests in Borouge plc (Borouge) and Borealis AG (Borealis) at a time when ADNOC confirms its interest in exploring this opportunity, which has many positive potentials.
Borouge is a company listed on the Abu Dhabi Stock Exchange, in which ADNOC holds a 54% stake, Borealis holds a 36% stake, and individual and institutional investors own a 10% stake in Borouge. As for Borealis, it is 75% owned by OMV and ADNOC owns 25% of its shares.
ADNOC is conducting these negotiations as the majority shareholder of Borouge and OMV as the majority shareholder of Borealis, provided that the final decision on the transaction is subject to the management processes of Borouge and related parties.
Last June, Bloomberg reported that Emirati company ADNOC was in talks with Austrian company OMV to merge their subsidiaries into a $30 billion petrochemicals giant.
Source: Emirates Today
