State-owned Abu Dhabi National Oil Company (ADNOC) and Austria's OMV will merge their polyolefin businesses to create a $60 billion chemicals powerhouse, call

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.

The two companies are merging some petrochemicals and plastics units to form Borouge Group, which will also acquire Canada's Nova Chemicals.

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.

Combination of Borouge and Borealis to create Borouge Group International, with new entity to acquire Nova Chemicals for $13.4 billion, establishing the world’s fourth-largest polyolefins player

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.