OMV and ADNOC announced the signing of a binding agreement for the combination of their shareholdings in Borealis and Borouge into Borouge Group International. ADNOC has also entered in a share purchase agreement with Nova Chemicals Holdings GmbH, an indirectly wholly owned company of Mubadala Investment Company P.J.S.C. for 100 percent of Nova Chemicals for an enterprise value of USD 13.4 billion. ADNOC and OMV have also agreed that upon completion of the combination, Borouge Group International will acquire Nova Chemicals further expanding its footprint in North America.
Once fully operational, Borouge 4 is envisaged to be retransferred to Borouge Group International at the end of 2026 at cost, estimated to be approximately USD 7.5 billion. When combined, the three highly complementary world-class businesses will create the fourth-largest global polyolefin group with equal shareholdings by OMV and ADNOC.
The acquisition of Nova Chemicals, a North American-based polyolefin producer and a leader in advanced packaging solutions and proprietary technologies, will further strengthen Borouge Group International’s presence across the Americas and increase its exposure to advantaged feedstock.
Borouge Group International will benefit from a strong pipeline of near-term organic growth projects. It will also be able to leverage Borealis’ and Nova Chemicals’ expertise to increase its share of premium grade products in growing industries. In addition, it will leverage Borealis’ unique technology portfolio, to meet the growing market demand in key sectors. This includes Borstar®, a unique process and catalyst technology enabling molecular design, BorlinkTM, which helps linking grids and energy sources regionally and globally, BorceedTM, a technology needed for closing the gap between classic thermoplastic products and rubbers, as well as BorcycleTM, a recycling technology closing the loop on plastic waste. Nova Chemicals’ technologies include the Advanced SCLAIRTECHTM process, combining innovations in reactors and catalysts to produce premium polyethylene resin, and SYNDIGOTM, a mechanically recycled food-contact resin for the food packaging market.
With more than 16,500 granted patents, Borouge Group International will have a competitive advantage through its leading technological expertise, innovation and R&D capabilities. Its cost advantaged feedstock position will account for approximately 70 per cent of its production capacity.
Demand in polyolefins is expected to grow globally at a CAGR of 3.7 per cent between 2024-2035. This is being driven by higher demand growth regions and megatrends including population growth, healthcare and hygiene demand, materials needed for the energy transition, food waste and scarcity, as well as water access and sanitation.
