ADNOC Plans Major Acquisition with OMV for Nova Chemicals
Deal News | Feb 04, 2025 | EIN
ADNOC and OMV are strategizing to acquire Nova Chemicals Corp. with the intention of creating a dominant global chemical enterprise. Both companies, which have strong ties within their chemical ventures, plan to integrate Nova Chemicals into their existing frameworks. Current discussions include Abu Dhabi's Mubadala Investment Co., the existing owner of Nova Chemicals, to finalize the acquisition terms. The consolidation aims to merge Borouge Plc with Borealis AG, thereby forming a $30 billion chemicals leader. This acquisition is expected to bolster the entity's North American market presence, leveraging facilities like those in Louisiana. ADNOC and OMV's strategy aligns on increasing their stake in the chemical and natural gas industries as a response to growing global demand.
Sectors
- Chemical Industry
- Energy Industry
Geography
- United Arab Emirates – ADNOC is based in the UAE, and the regional strategy involves UAE-listed Borouge Plc.
- Austria – OMV AG, based in Austria, is a key participant in this acquisition.
- Canada – Nova Chemicals Corp, the target company, is headquartered in Canada.
- United States – The acquisition extends to North American operations, with key facilities in the US, including Louisiana.
Industry
- Chemical Industry – This article pertains to the chemical industry, involving substantial mergers and acquisitions to form a global chemical powerhouse.
- Energy Industry – ADNOC and OMV, both energy companies, focus on the integration of Nova Chemicals to leverage natural gas supply and market presence.
Financials
- $30 billion – The valuation of the new chemical entity formed after merging Borouge, Borealis, and acquiring Nova Chemicals.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ADNOC | Acquirer | Company | Abu Dhabi National Oil Co., a major energy company in the UAE, engaged in expanding its chemical and natural gas sectors. |
| OMV AG | Acquirer | Company | Austrian energy producer collaborating with ADNOC to acquire Nova Chemicals. |
| Nova Chemicals Corp. | Target Company | Company | A Canadian chemical company being acquired by ADNOC and OMV. |
| Mubadala Investment Co. | Selling Company | Company | Abu Dhabi's sovereign wealth fund and current owner of Nova Chemicals. |
| Borouge Plc | Part of Merged Entity | Company | A UAE-listed company to be merged into the new chemical entity. |
| Borealis AG | Part of Merged Entity | Company | A European chemicals producer set to merge with Borouge Plc. |