#AbuDhabi, OMV in Talks to Combine Borouge, Borealis to Form $30 Billion Giant - Bloomberg

Abu Dhabi, OMV in Talks to Combine Borouge, Borealis to Form $30 Billion Giant - Bloomberg

Abu Dhabi and Austria’s OMV AG are exploring a combination of Borouge Plc and Borealis AG to create a chemicals and plastics company worth more than $30 billion, people familiar with the matter said.

The owners are discussing the potential valuation and ownership structure of a combined entity and may reach the broad outlines for formal merger negotiations in the coming weeks, according to the people. Talks have been on-and-off for several months and could still be delayed or fall apart, they said, asking not to be identified because deliberations are private.

Vienna-headquartered Borealis is 75% owned by OMV, with the remainder held by Abu Dhabi National Oil Co. Abu Dhabi-listed Borouge is itself a partnership between Adnoc and Borealis and has a market value of about $22 billion.

The two parties are discussing a possible valuation of about $10 billion for Borealis, including its Borouge stake, the people said. After taking into account potential synergies, the overall valuation of the combined entity could exceed $30 billion, the people said. The exact value and ownership structure remain the two key hurdles for any agreement and may still change, they said.

OMV shares jumped as much as 9.1% in Tuesday afternoon trading, the biggest intraday gain since October 2022. They were up 7.6% at 4:32 p.m. in Vienna.