UAE’s Adnoc seeks to acquire Nova Chemicals, merge into OMV deal

Adnoc and OMV Plan $30 Billion Merger of Borouge and Borealis Units

Abu Dhabi National Oil Co. (Adnoc) and Austrian energy firm OMV AG are exploring the acquisition of Canada’s Nova Chemicals Corp., with plans to integrate it into a larger industry leader they aim to form by merging two companies in which they hold cross-shareholdings.

The UAE state-owned oil company and OMV are engaged in “constructive and positive” discussions about merging two chemical businesses they jointly own, Adnoc stated on Saturday. The proposed deal could create a chemicals powerhouse with an estimated value exceeding $30 billion.

Adnoc and OMV also confirmed ongoing talks with Abu Dhabi’s sovereign wealth fund, Mubadala Investment Co., the current owner of Nova Chemicals, regarding a potential acquisition. Should the deal proceed, Nova Chemicals would be absorbed into the new entity formed from the merger of Adnoc and OMV’s existing chemical operations.

For at least 18 months, Adnoc and OMV have been negotiating a merger between UAE-listed Borouge Plc and European chemicals producer Borealis AG, aiming to establish a dominant force in the polyolefin sector. The resulting company would be valued at approximately €30 billion ($31 billion), benefiting from advanced technology and cost-effective feedstock.

Acquiring Nova Chemicals would likely involve a multibillion-dollar transaction. The addition of its production facilities in Canada and the U.S., including a site in Louisiana along the Gulf Coast, would significantly strengthen the Borouge-Borealis entity’s North American presence and secure access to abundant natural gas resources.

Both Adnoc and OMV are aggressively expanding their presence in chemicals and natural gas to meet future energy demands and provide raw materials for plastics used in consumer goods, aligning with global energy transition trends.