ADNOC and OMV join forces to create a $more than 60 billion polyolefin business

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ADNOC and OMV have joined forces to build Bolu International Group, which plans to acquire Nova Chemical to become the world's fourth largest polyolefin producer, and is expected to complete the acquisition in the first quarter of 2026.

Recently, the global petrochemical industry ushered in a major change, the United Arab Emirates Abu Dhabi National Oil Company (ADNOC) and the Austrian oil and gas company (OMV) jointly announced a major acquisition plan.

Core M & A Plan

ADNOC and OMV have entered into a binding framework agreement to merge Bolor and Borealis to form the new Bolor International Group (BGI). The combination will create a global polyolefin leader valued at more than $60 billion. ADNOC also announced a share purchase agreement with Nova Chemical Holdings to acquire 100 percent of Nova Chemical. Nova Chemical is a leading producer of polyethylene in North America, with an annual production capacity of 2.6 million metric tons of polyethylene and 4.2 million metric tons of ethylene.

Price and Equity Allocation

on this basis, Boru International Group will acquire Nova Chemical for US $13.4 billion (including debt). After the completion of this acquisition, together with the redistribution of the Bolu-4 project, the annual production capacity of Bolu-4 Group will reach 13.6 million tons, making it one of the fourth largest polyolefin producers in the world. In terms of equity distribution, ADNOC and OMV will each hold 46.94 per cent of the shares in BGI, for which OMV will inject $1.6 billion in cash into the merged entity to ensure equal equity between the two parties. The remaining 6.12 per cent of the shares will be freely floated.

Group Structure and Listing Plan

bolu International Group plans to have its headquarters in Austria and regional headquarters in the UAE. In addition, the Group will retain key corporate centers in Calgary, Pittsburgh and Singapore to ensure the smooth operation of its global business. It is worth noting that Bolu International Group also plans to list on the Abu Dhabi Stock Exchange (ADX) to further expand its financing channels.

M & A Process and Future Prospects

looking back on the merger and acquisition process, ADNOC began discussions with OMV on the merger of Bolu Company and Nordic Chemical Company as early as July 2023. At present, the merger of Bolu and Nordic Chemical and the acquisition of Nova are expected to be completed in the first quarter of 2026, subject to regulatory approval and other customary conditions. This merger will profoundly affect the pattern of the global petrochemical industry and lay a solid foundation for the future development of Boluo International Group.

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