OMV and XRG complete transactions to create Borouge International

Borouge International has been formed by the combination of Borouge Plc and Borealis, with the new entity acquiring NOVA Chemicals. Backed by long-term shareholders OMV and XRG, Borouge International combines the highly complementary strengths of three polyolefins leaders and will benefit from one of the most geographically diversified and innovative platforms in the sector.

Dr. Sultan Al Jaber, Executive Chairman of XRG, said: “This milestone marks the successful establishment of Borouge International and accelerates XRG’s ambition to build a globally leading chemicals platform. By combining Borouge and Borealis and acquiring NOVA Chemicals, we are creating a world-scale polyolefins leader with differentiated technology, a resilient business model, and access to high-growth markets. Borouge International is positioned to meet growing global demand for advanced materials, while supporting industrial development, driving economic diversification, and reinforcing the UAE’s role as a trusted leader in the global energy and chemicals landscape.”

Dr. Alfred Stern, Chairman of the Executive Board and CEO of OMV, said: “Together with our long-time partner ADNOC, we are turning our vision of creating a new global polyolefins leader into reality. The new polyolefins champion Borouge International will establish itself globally with products, a strong feedstock position, proximity to customers, and a robust capital structure. The completion of the transactions is momentous for the entire industry, as well as for OMV, solidifying its market position as an integrated energy, fuels, and chemicals company. Borouge International accelerates our growth strategy in chemicals with its unique ability to realise synergies and build on the market positions of its respective businesses. This transaction delivers on our purpose of re-inventing everyday essentials and our mission to drive long-term, sustainable value creation for OMV’s shareholders.”

The new industry champion is headquartered and tax domiciled in Austria, with regional headquarters in the UAE. Borouge International will operate corporate hubs across North America, Europe, and Asia, with innovation centres in Austria, UAE, Canada, Finland, Sweden, and China driving innovation in core demand markets and ensuring close collaboration with customers. Borouge International will leverage its integrated global manufacturing sites and advantaged feedstock access to deliver worldwide supply chain resilience.

Borouge International's scale, proprietary technology, and operational strength position the company to deliver materials and technologies powering the transformation of the global economy. Its ambitious growth strategy will allow the monetisation of its strong innovation capability, based on proprietary technologies in key client markets, from energy, mobility, and AI infrastructure to sustainable packaging and healthcare solutions. With near-term growth projects like the 1.4 million t Borouge 4 site (currently owned 70% by ADNOC and 30% by OMV), Borouge International has access to a leading global production capacity of 13.6 million tpy. Through this transaction, the shareholders have created a global polyolefins champion.

As announced in March 2025, ADNOC’s stake in Borouge International has now been transferred to XRG, a wholly-owned subsidiary of ADNOC, complementing XRG’s Global Chemicals Platform and fully supporting its ambition to become a top three global chemicals investor. Borouge International will be jointly controlled as an equal partnership between OMV and XRG, each holding a 50% stake. As long-term shareholders focused on value creation, both companies are committed to unlocking the full potential of Borouge International, including the realization of identified and future synergies.

OMV and XRG reaffirm the importance of the previously announced planned tender offer to create a simplified structure that will enable value creation from the new global growth platform. The timing of the proposed tender offer, which will convert Borouge Plc shares to Borouge Group International AG shares, will align with the new company’s future equity raise, to maximise value for all shareholders. The tender offer is expected to take place in 2027, subject to market conditions and approval by the UAE Capital Market Authority. Until then, Borouge Group International AG will be privately held, and Borouge Plc shares will remain listed on the Abu Dhabi Securities Exchange (ADX).

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/01042026/omv-and-xrg-complete-transactions-to-create-borouge-international/