Borouge Group International: A New $60 Billion Polyolefins Giant
Deal News | Mar 04, 2025 | EIN
In a strategic move set to reshape the global chemicals industry, UAE's Adnoc and Austria's OMV have announced the merger of their shareholdings in Borouge and Borealis AG, creating Borouge Group International, a $60 billion global integrated chemicals giant. The merger will make it the world's fourth-largest producer of polyolefins. Furthermore, alongside the creation of this new entity, Adnoc has entered into an agreement to acquire Nova Chemicals Corporation for $13.4 billion, enhancing its North American presence. Borouge Group International will be domiciled in Austria with regional headquarters in UAE and several corporate hubs across the globe. The merger includes significant financial arrangements, including debt financing through the capital markets and envisages substantial operational and commercial synergies. With expectations of achieving a $7 billion per annum through-the-cycle EBITDA, this transformative merger aims for an IPO in 2026, subject to regulatory approvals. Both Adnoc and OMV will hold equal stakes in the newly formed entity, emphasizing their 25-year-old strategic partnership geared toward sustainable chemicals and energy solutions.
Sectors
- Chemicals
- Petrochemicals
Geography
- United Arab Emirates – The UAE is the home country of Adnoc and an important regional headquarters for the newly formed Borouge Group International.
- Austria – Austria is where Borealis AG is based and will be the domiciled headquarters for Borouge Group International.
- North America – The acquisition of Nova Chemicals expands Adnoc and OMV's footprint in North America, highlighting its strategic importance.
Industry
- Chemicals – The merger involves major players in the chemicals industry, combining assets to create a global leader in polyolefins production.
- Petrochemicals – The deal specifically targets the polyolefins sector, a key area within petrochemicals, focusing on polyethylene and ethylene production.
Financials
- $60 billion – Estimated combined entity value of the Borouge and Borealis merger.
- $13.4 billion – Acquisition cost for Nova Chemicals, including debt.
- 7.5x EBITDA – Implied acquisition multiple for Nova Chemicals.
- $4 billion – Planned primary capital raise for 2026, envisioned to achieve MSCI index inclusion.
- $500 million – Estimated synergy potential in additional run-rate EBITDA.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Adnoc | Buyer | Company | A leading energy company from the UAE, involved in the merger and acquisition activities related to Borouge and Nova Chemicals. |
| OMV | Buyer | Company | A multinational integrated oil, gas, and petrochemical company headquartered in Austria, partnering with Adnoc in the merger. |
| Borouge Group International | Target Company | Company | The newly formed entity from the merger of Borouge and Borealis, intended to be a major player in the global polyolefins sector. |
| Borealis AG | Seller | Company | An Austrian provider in advanced and circular polyolefin solutions, merging with Borouge under Adnoc and OMV. |
| Nova Chemicals Corporation | Target Company | Company | A North American polyethylene producer being acquired to enhance the new entity’s North American market presence. |
| Mubadala Investment Company | Seller | Company | Owning Nova Chemicals, selling it to Adnoc as part of the agreement. |