OMVJF - OMV says pursuing talks with Adnoc for potential chemicals combination

2023-07-14 12:13:48 ET

Austrian oil and gas producer OMV ( OTCPK:OMVJF ) ( OTCPK:OMVKY ) confirmed Friday it has entered negotiations with Abu Dhabi National Oil Company to potentially combine their polyolefins businesses and create a global joint chemicals and plastics company.

The deal, if realized, would include a merger of the Borealis ( OTCPK:BOREF ) petrochemicals group, which is owned by OMV and Adnoc in a 75-25 split, and Borouge, which is 54-36 owned by Adnoc and Borealis.

Bloomberg reported recently that OMV ( OTCPK:OMVJF ) ( OTCPK:OMVKY ) and Adnoc were discussing the valuation and ownership structure for a potential deal valued at more than $30B.

For OMV ( OTCPK:OMVJF ) ( OTCPK:OMVKY ), a deal could accelerate plans to transform itself from one of eastern Europe's top fossil fuel companies to an integrated green enterprise built around chemicals, recycling and electric vehicle infrastructure.

Adnoc, which pumps nearly all oil in the United Arab Emirates, plans to spend $150B to expand production capacity for crude, natural gas and chemicals, as well as low-carbon energy.

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