(Reuters) – Austria’s OMV and Abu Dhabi National Oil Company (ADNOC) said on Friday they are considering a joint venture to acquire Canada’s Nova Chemicals if its owner, the Abu Dhabi sovereign wealth fund Mubadala, agrees.
The proposed acquisition would create a global polyolefin group, which would combine Nova Chemicals, Borealis and Borouge, according to a statement.
ADNOC and OMV have been in talks since 2023 about a merger of Borouge and Borealis, which would have created a chemicals group with over $20 billion in annual sales.
Borealis is a joint venture owned 75% by OMV and 25% by ADNOC, while Borouge is another joint venture between ADNOC and Borealis, in which they hold 54% and 36%, respectively.
Last year, ADNOC said it bought a 24.9% stake in OMV from Mubadala, without disclosing the financial terms.
ADNOC had said the deal increased its shareholding in both Borouge and Borealis but did not disclose the ownership breakdown.
The potential transactions are subject to approvals of corporate bodies of the respective parties involved, including the executive board and the supervisory board of OMV, according to Friday’s statement.
(Reporting by Urvi Dugar; Editing by Mohammed Safi Shamsi)
