Borealis and Borouge may combine

Abu Dhabi National Oil Company (ADNOC) and the Austrian refiner OMV have entered negotiations that could see them merging two firms that are already closely related: the European polyolefins maker Borealis and the polyolefins producer Borouge, which is based in Abu Dhabi. Borealis is 75% owned by OMV and 25% by ADNOC. It had sales of $9.8 billion in 2022. Borouge, meanwhile, is 54% owned by ADNOC and 36% by Borealis; it had sales of $6.7 billion last year. OMV says a merger would combine Borealis’s technology position with Borouge’s access to raw materials. It could make the combined firm a global petrochemical player and set the stage for future acquisitions. So far this year, ADNOC has participated in a bid to acquire a controlling interest in Brazil’s Braskem and reportedly made a play for the German chemical maker Covestro.