"ADNOC" and "OMV" They are moving forward with establishment procedures "Borouge International Group AG"
ABU DHABI, March 19 / WAM / Abu Dhabi National Oil Company (ADNOC) and the Austrian company OMV Aktiengesellschaft (“OMV”) today announced significant progress in efforts to establish the “Borouge International Group AG”, which included the signing of the Asset Use Agreement (the “Agreement”) for the “Borouge 4” complex.
The steps to establish the “Borouge International Group AG” are proceeding according to the approved plan, as “Borouge PLC” and “Borealis” will be merged, in addition to the acquisition of “Nova Chemicals”, and the deals are expected to be completed at the end of March 2026, after meeting the necessary conditions and standards.
“Borouge 4” is a new and integrated polyolefin production complex with an ethane crushing capacity of 1.5 million tons, in addition to a polyethylene production capacity of 1.4 million tons. The first plant is expected to start operating during the current quarter.
The complex uses the latest Borstar® technology to produce advanced, high-quality polyethylene. The ownership shares of the complex are divided between ADNOC (70%) and OMV (30%). It forms part of Borouge’s production site and is planned to become the largest single-site polyolefin production complex in the world.
The agreement allows Borouge PLC, and later Borouge International Group AG, the ability to operate and market the quantities produced by the “Borouge 4” complex in exchange for fees for using the assets at cost. It will also provide both parties with financial flexibility and the possibility of achieving cumulative net profits estimated at $400 million, meaning an average increase in profits of approximately 10% annually for Borouge PLC during the next three years after full operation.
The agreement for Borouge 4 is expected to remain in place until Borouge International Group AG acquires the complex from its current owners, which is not expected to happen before 2029, allowing flexibility in the timing of future capital expenditures.
It is planned that Borouge 4 operations will gradually accelerate throughout 2026. After signing the agreement, “Borouge International Group AG” will have the ability to benefit from 13.6 million tons of nominal production capacity within the regions of Europe, the Middle East and North America, which strengthens the company’s position as the fourth largest producer of polyolefins in the world, and it is expected that the combined company will continue to achieve profit margins among the best in this category, and enhance cooperation and integration mechanisms in the business.
It is expected that “Borouge International Group AG” will receive a credit rating of “A (negative outlook)” from Standard & Poor’s, “Baa1 (stable outlook)” from Moody’s, and “A- (stable outlook) from Fitch, which confirms the strength of its financial position and capital structure. ADNOC and OMV are committed to ensuring that “Borouge International Group AG” maintains good investment grade credit ratings.
Borouge International Group AG will benefit from one of the most geographically spread platforms in the polyolefins sector, as it will witness the integration of production operations across three continents and will be able to meet the requirements of customers around the world. This global reach, long-term support from shareholders and a strong capital structure will enhance the company’s resilience through the business cycle and its established ability to achieve sustainable returns for shareholders.
ADNOC and OMV stress the importance of the previously announced share swap offer to create a simplified structure that allows for value creation from the new global growth platform. The proposed timing of the share swap offer, in which Borouge PLC shares will transfer to Borouge International Group AG shares, will be in line with the new group’s future capital increase plans, which will contribute to enhancing value for all shareholders.
The offer is expected to be submitted in 2027, and this depends on the prevailing market conditions and obtaining the approval of the Capital Market Authority in the UAE. Until then, “Buruj International Group AG” will be privately owned (a private, unlisted company), while shares of “Buruj PLC” will remain listed on the Abu Dhabi Securities Market. The recently obtained credit ratings also took into account the influence and flexibility factors in the timing of the future capital increase and the planned acquisition of the “Buruj” complex by “Buruj International Group.” 4″.
Borouge PLC shareholders, as well as ADNOC and OMV, which own Borouge International Group AG, will benefit from the gradual increase in value provided by the agreement. Borouge PLC shareholders are also likely to benefit from the commitment to a targeted annual dividend of 16.2 fils per share, which Borouge International Group AG will maintain after completing the proposed share exchange offer.
Upon completion of the transactions, XRG and OMV will each own equal shares of 50% in Borouge International Group AG, with joint control and equal partnership. As long-term owners, both companies are committed to enhancing the capabilities of Borouge International Group AG, including achieving business synergies.
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