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