OMVJF - Abu Dhabi OMV in talks over $30B chemicals merger - Bloomberg

2023-07-04 17:22:39 ET

Abu Dhabi and Austria's OMV ( OTCPK:OMVJF ) ( OTCPK:OMVKY ) are exploring a combination of Borouge and Borealis to create a chemicals and plastics company worth more than $30B, Bloomberg reported Tuesday.

The parties are discussing the potential valuation and ownership structure of a combined entity and may reach the broad outlines for formal merger negotiations in the coming weeks, according to  the report.

Borealis is 75% owned by OMV ( OTCPK:OMVJF ) ( OTCPK:OMVKY ), with the rest held by Abu Dhabi National Oil Co., while Borouge is a partnership between Adnoc and Borealis.

The potential deal would fit in a wider plan by the United Arab Emirates to attract investment and technology as well as build new industries and manufacturing capabilities, the report said.

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