Abu Dhabi and OMV in Talks to Establish a Chemicals Company

A knowledgeable source informed Reuters today, Tuesday, that Abu Dhabi and the Austrian company OMV are considering merging two major companies in the chemicals and plastics sector in a deal that could lead to the creation of a group valued at tens of billions of dollars. Abu Dhabi National Oil Company (ADNOC) holds a 25% stake in the Austrian oil and gas company OMV. OMV also has a stake in Borealis, which in turn has a stake in Borouge. Earlier, Bloomberg News reported that the parties are discussing a valuation of Borealis at around $10 billion, including its stake in Borouge, adding that the overall value of the new entity could exceed $30 billion. The report indicates that the parties are examining the valuation and potential ownership structure of the new entity and may reach an agreement on the outlines for formal merger negotiations in the coming weeks.