By Gursimran Mehar, Yousef Saba, Federico Maccioni and Abinaya V(Reuters) -Abu Dhabi National Oil Company and Austria's OMV will merge their polyolefin businesses to create a chemicals powerhouse with a $60 billion enterprise value,

Abu Dhabi’s Adnoc and Austria’s OMV reached an agreement to combine their petrochemical businesses and subsequently acquire Canada’s Nova Chemicals to form a giant with a combined value of about $60 billion.

Nova is one of North America’s largest polyethylene (PE) resin makers, and is wholly owned by Mubadala Investment Co., a state-owned investment group based in Abu Dhabi. Nova has resin production facilities in Joffre, Alta.; Sarnia, Ont.; Geismar, La.; and a new film recycling plant in Connersville, Ind.

The United Arab Emirates’ and Austria’s top oil companies agreed on terms to create a chemicals giant worth more than $60 billion, enhancing their positions in an industry they expect will continue to grow in the energy transition.

Following the acquisition, the new firm, called Borouge Group International (BGI), will be the world’s fourth-largest polyofin company, said ADNOC and OMV.

The $60 billion company formed by the merger of Adnoc and OMV AG’s chemical units is targeting a more than 50% boost in profits, and remains open for further deals or building new plants.