Emirati ADNOC and Austrian OMV are discussing the merger of their petrochemical subsidiaries – Kommersant
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Abu Dhabi National Oil Company (ADNOC) and Austrian oil and gas company OMV are discussing the possibility of merging their petrochemical subsidiaries, Austrian Borealis and Emirati Borouge (a joint venture between ADNOC and OMV). They plan to merge to create a chemical and plastics company worth more than $30 billion, reports Bloomberg citing sources familiar with the matter.
One of the interlocutors of the agency said that negotiations between the companies have been going on for several months. It is noted that Borealis is 75% owned by OMV and 25% owned by ADNOC. Borealis is valued at around $10 billion and Borouge at $22 billion, according to sources.
The interlocutors of the agency claim that the parties are still discussing what shares they will have in the combined company. According to one of the possible scenarios, ADNOC and OMV will own the same shares, not exceeding 50%, and the rest will be freely floated on the stock exchange. The Austrian side insists that the company’s headquarters be in Europe, where most of the operations take place, Bloomberg reports.
According to Bloomberg, the merger is part of the UAE’s plan to attract investment and technology to the country, as well as create new industries and manufacturing facilities. The agency recalls that OMV last year announced plans to become a “green” enterprise, built around the chemical industry, recycling, and electric vehicle infrastructure.
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