Austrian OMV and ADNOC are interested in acquiring Nova Chemicals

Austria's OMV, and Abu Dhabi National Oil Company's (ADNOC), said that they were considering a joint-venture to purchase Canada's Nova Chemicals, if the owner of Nova Chemicals, Abu Dhabi's sovereign wealth fund Mubadala agrees.

According to a press release, the proposed acquisition would create an international polyolefins group that would include Nova Chemicals Borealis, and Borouge.

ADNOC and OMV are in discussions since 2023 regarding a merger between Borouge and Borealis. This would have created an chemicals group with annual sales of over $20 billion.

Borealis is owned by OMV at 75% and ADNOC at 25%, whereas Borouge, a second joint venture, is between ADNOC & Borealis with 54% & 36% respectively.

ADNOC announced last year that it had purchased a 24,9% stake in OMV, from Mubadala. However, the financial terms were not disclosed.

ADNOC said that the deal increased their shareholdings in Borouge and Borealis, but they did not reveal the ownership breakdown.

According to the statement released on Friday, the potential transaction is subject to the approval of corporate bodies, such as the executive board of OMV and its supervisory board. (Reporting and editing by Mohammed Safi Shamsi; Urvi Dugar is the reporter)

(source: Reuters)