Monday 22 January 2024

OMV, ADNOC to iron out terms of deal for chemicals tie-up - sources | Reuters

OMV, ADNOC to iron out terms of deal for chemicals tie-up - sources | Reuters

Abu Dhabi National Oil Co (ADNOC) and Austria's OMV (OMVV.VI) are poised to resume talks to agree final terms of a tie-up that would create a chemicals group with more than $20 billion in combined annual sales, sources close to the deal said.

Three people with knowledge of the situation said there are still outstanding terms to agree on, with two of them saying that the companies planned to resume talks possibly as soon as this week.

OMV said in July last year it had entered into talks to merge petrochemicals group Borealis - which is owned by OMV and ADNOC in a 75:25 split - and Borouge (BOROUGE.AD), which is listed in Abu Dhabi and 54:36 owned by ADNOC and Borealis.

The two sides had been close to agreement, sources told Reuters previously.

But a number of sticking points remain, including a provision for job guarantees in Austria, a requirement for a Vienna listing and an Austrian chairman of the new company, two of the people said, speaking on condition of anonymity.

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