“XRG” and “OMV” complete the deals to establish “Borouge International Group AG”

XRG, the international investment arm in the energy sector owned by ADNOC, and OMV Aktiengesellschaft (OMV), today announced the successful completion of the establishment of Borouge International Group AG, which will operate under the trade name “Borouge International” to become a leading company specializing in the field of polyolefins in the world, and the fourth largest polyolefins producer in the world, distinguished by its high-quality products, pioneering technologies and global presence.

Borouge International was established through the merger of Borouge PLC and Borealis and the acquisition of Nova Chemicals by the new group. Borouge International benefits from the capabilities of three leading companies in the field of polyolefins, and the large presence of its business on a wide geographical scale thanks to long-term support from shareholders.

On this occasion, Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC and its group of companies, and Executive Chairman of the Board of Directors of XRG, said: “Completing the establishment of Borouge International is an important strategic step that enhances progress in implementing XRG’s goal of building a leading platform in the field of chemicals in the world. Through the merger of Borouge PLC, Borealis, and Nova Chemicals, we have succeeded in building a global leader in the field of polycarbonate. Olefins is distinguished by its advanced technological capabilities, the strength of its business model, and its ability to reach high-growth markets. We are all confident that Borouge International has a unique position that allows it to meet the growing global demand for advanced materials, support the growth and development of the industrial sector, diversify the economy, and consolidate the UAE’s reliable position and its leading role globally in the energy and chemicals sectors.”

For his part, Alfred Stern, CEO of OMV, said: “Through our long-term partnership with ADNOC, we have succeeded in implementing our common goal and establishing Borouge International, the world’s leading group in the field of polyolefins, which will consolidate its position globally thanks to its innovative products, easy access to raw materials, geographical proximity to customers, and strong capital structure. This is an important step for the sector and for OMV that strengthens its position as a company.” Integrated in the fields of energy, fuels and chemicals, Borouge International also supports the implementation of our strategic plans to achieve growth in the chemicals sector based on its unique ability to benefit from the market position of its component companies and the areas of integration between its businesses. This step also contributes to implementing our goal of reinventing the basic materials that the world depends on daily, and strengthening our commitment to creating and enhancing long-term sustainable value for OMV shareholders. By establishing “Borouge International”, we contribute to establishing a world-class company based in Headquartered in the center of Europe, with production operations on three continents, it will be at the forefront of companies providing solutions for renewable energy and the circular economy.”

Borouge International has its headquarters and tax center in Austria, in addition to a regional headquarters in the UAE. The group will manage operational centers across North America, Europe and Asia, and innovation centers in the UAE, Austria, Canada, Finland and Sweden, in a way that enhances innovation in key demand markets and ensures solid cooperation with customers. Borouge International will also benefit from its global and integrated manufacturing locations in addition to its easy access to raw materials to enhance the flexibility of global supply chains.

It is planned that the group will achieve a distinct and solid profit margin, and returns from operational and commercial integration that are expected to exceed 1.8 billion dirhams ($500 million) before deducting interest, taxes, depreciation and amortization annually, 75% of which is expected to be achieved in the first three years after establishment.

The group’s global presence, in addition to its strong capital structure and long-term support from shareholders, will contribute to enhancing the resilience of its business across the economic cycle and enabling it to achieve better and more sustainable returns for shareholders.

Borouge International is distinguished by its broad business volume, advanced technologies, and high operational efficiency, which qualifies it to provide materials and technologies that enable it to contribute to achieving a qualitative shift in the global economy.

It is planned that the implementation of its strategic growth plans will enable it to achieve profit and provide liquidity by taking advantage of its distinguished capabilities in the field of innovation based on proprietary technologies, and its proximity to customers in key markets across a range of areas that include energy, mobility, artificial intelligence, infrastructure, sustainable packaging and healthcare.

Thanks to near-term growth projects such as the “Borouge 4” project, which has a production capacity of 1.4 tons and is currently 70% owned by ADNOC and 30% by OMV, Borouge International has the ability to reach a production capacity of 13.6 million tons annually to become a leading global company in the field of polyolefins.

Borouge International’s recently appointed executive management team has extensive experience spanning decades in senior management positions across the chemicals, commodities and refining sectors globally. The team includes Roger Cairns, CEO, Dr. Stefan Dubotsky, Chief Commercial Officer, and Dr. Hassan Karam, Chief Operating Officer. Daniel Tornheim, currently the Chief Financial Officer at Borealis, will assume the role of Acting Chief Financial Officer at Borouge International.

As announced in March 2025, ADNOC’s stake in Borouge International was transferred to XRG, a wholly-owned subsidiary of ADNOC, strengthening XRG’s global chemicals platform and supporting the implementation of its goal to be among the top three investors in the chemicals sector globally.

Borouge International will be under joint control and equal partnership between XRG and OMV, with each of them holding a 50% stake. As long-term shareholders focused on value creation, both companies are committed to working to maximize Borouge International’s capabilities, including current and future complementarities.

ADNOC and OMV emphasize the importance of the previously announced share swap offer to create a simplified structure that enables value creation from the new global growth platform. The proposed timing of the share exchange offer, whereby Borouge PLC shares will transfer to Borouge International Group AG shares, will be in line with the future capital increase plans of the new group, which will contribute to enhancing value for all shareholders.
The offer is expected to be submitted in 2027, depending on prevailing market conditions and obtaining the approval of the Capital Market Authority in the UAE.

Until then, Borouge International Group AG will be privately owned (private, unlisted company), while Borouge PLC shares will remain listed on the Abu Dhabi Stock Exchange. “Buruj International Group AG” recently obtained credit ratings 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 and its ability to access a range of long-term financing options.

ADNOC and OMV are committed to ensuring that Borouge International Group AG maintains good investment grade credit ratings. The deal closing process also included the launch of a new brand identity for Buroj International globally.

This identity highlights the contribution of the companies that make up “Borouge International” and its transformation into a strong unified company, applying the “one company, one culture” methodology, and jointly seeking to implement its goals and establish a global leadership position in the sector.

Borouge International’s new brand slogan, “Basic materials that support the world’s progress,” emphasizes the company’s strategic priorities as a leading global entity characterized by the necessary capabilities in terms of size, its ability to access raw materials, innovative capabilities, and the geographic spread of customers that allow it to contribute effectively to meeting the accelerating demand for advanced materials to achieve progress, improve the standard of living, and contribute to creating a qualitative shift in the global economy.