OMV and ADNOC secure EU approval for $13.4B Nova deal, creating Borouge, poised as fourth-largest global polyolefins producer.
OMV and the Abu Dhabi National Oil Company (ADNOC) have received regulatory clearance from the European Commission for their proposed $13.4 billion acquisition of Nova Chemicals, a deal first announced in March 2025. The transaction will be executed through Borouge Group International, a new petrochemical entity jointly formed by OMV and ADNOC. With this development, the planned merger moves a significant step forward, positioning Borouge Group International to become the world’s fourth-largest producer of polyolefins—essential plastic resins used in a wide range of industries.
The European Commission’s antitrust review concluded that the merger does not pose any significant competition risks. According to the Commission, the combined market share of the merging companies is relatively limited and does not threaten to distort the competitive landscape. This green light from the EU means that the companies can proceed with the integration process under the framework of the EU Merger Regulation.
Despite this milestone, the deal could still encounter future regulatory challenges. The European Commission has recently demonstrated a more cautious approach to foreign investments, especially those involving critical infrastructure or sectors. A recent example is ADNOC’s attempted acquisition of German chemical firm Covestro, which, despite receiving initial clearance, now faces potential scrutiny under foreign investment regulations. Similarly, although the Nova acquisition has passed this current hurdle, it may still come under review in the future. The European Commission had paused its evaluation of the Borouge deal on May 28, but has now set a new deadline of July 28 to determine whether further investigation is warranted.
Should the acquisition proceed as planned, Borouge Group International will be headquartered in Vienna, Austria, with regional offices based in Abu Dhabi. It will also be publicly traded on the Abu Dhabi Securities Exchange (ADX), with a potential dual listing on the Vienna Stock Exchange in the future. This multinational structure reflects the strategic importance of both regions to the merged entity’s global operations.
Financially, the new company is projected to generate annual earnings before interest, taxes, depreciation, and amortization (EBITDA) of around $500 million, underlining the scale and profitability of the combined operations. The finalization of the acquisition and full operational integration are expected to occur in the first quarter of 2026, pending any further regulatory reviews or delays.
With this acquisition, OMV and ADNOC aim to strengthen their positions in the global petrochemicals market, leveraging the scale and resources of Borouge Group International to drive innovation, competitiveness, and long-term value creation.
