Abu Dhabi National Oil Company said on Wednesday it plans to transfer its 24.9 per cent shareholding in Austria’s OMV AG to its XRG investment unit ahead of the establishment of a chemicals company combining existing OMV and ADNOC firms.
ADNOC last year bought a 24.9 per cent stake in OMV from Abu Dhabi sovereign wealth fund Mubadala, without disclosing the financial terms.
Earlier this year, ADNOC and OMV agreed to merge their polyolefin businesses to create a chemicals company with a $60 billion enterprise value.
The merged entity, Borouge Group International (BGI), is set to be the world’s fourth-largest polyolefins firm by production capacity, behind China’s Sinopec and CNPC and U.S.-based ExxonMobil, ADNOC Downstream CEO Khaled Salmeen told Reuters in March.
BGI will combine two joint ventures – Borealis, 75 per cent owned by OMV and 25 per cent by ADNOC, and Borouge, 54 per cent owned by ADNOC and 36 per cent by Borealis, the company announced in March.
In its statement on Wednesday, ADNOC said it is progressing with preparation for the proposed establishment of BGI.
ADNOC’s proposed 46.94 per cent shareholding in BGI is expected to be held by XRG upon completion of the transaction, subject to regulatory approvals, the statement said.
