An OMV representative confirmed that the parties were in “ongoing negotiations”. Credit: Toni Genes/Shutterstock.

Abu Dhabi National Oil Company (ADNOC) and Austria’s OMV are on the brink of finalising terms for a merger that could establish a chemicals conglomerate worth billions, reported Reuters.   

According to sources familiar with the matter, although there are unresolved issues, discussions are expected to recommence, potentially within the week. 

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OMV, which holds a 75% stake in Borealis, with ADNOC controlling the remaining 25%, entered into negotiations last July to merge Borealis and Borouge into a single entity.  

Borealis, headquartered in Vienna, specialises in polyolefins solutions and recycling. 

Borouge, listed on the Abu Dhabi Securities Exchange, is a joint venture between ADNOC (54%) and Borealis (36%). 

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Previously, the parties were reported to be nearing an agreement.  

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However, several contentious points, such as employment guarantees in Austria, a stipulation for a Vienna listing, and an Austrian chairperson for the new company, have delayed the final accord, as per sources. 

Another source mentioned the possibility of a dual listing in Vienna and the United Arab Emirates (UAE).  

An OMV representative confirmed that the parties were in “ongoing negotiations”.  

Despite the hurdles, a consensus is anticipated as the challenges are deemed manageable by three sources.  

OMV had previously stated that Borealis and Borouge would merge to form “equal partners under a jointly controlled, listed platform for potential growth acquisitions to create a global polyolefin company”. 

In a separate development, ADNOC announced a commitment of $23bn (Dh84.47bn) towards decarbonisation and lower-carbon initiatives, an increase from its earlier $15bn target.  

This pledge was made at ADNOC’s annual board meeting, presided over by UAE President Sheikh Mohammed bin Zayed Al Nahyan. 

According to ADNOC: “The increased allocation will include investments to grow the company’s domestic and international carbon management platforms, supporting the decarbonisation journeys of both ADNOC and its customers.”