ADNOC, OMV Accelerate Launch of Global Fourth-Largest Polyolefin Producer; Borouge 4 Asset Deal Finalized Ahead of March 2026 Close

DUBAI, UAE / VIENNA, AUSTRIA – March 19, 2026 – Abu Dhabi National Oil Company (ADNOC), the UAE’s flagship energy and petrochemicals giant, and Austria-based OMV Aktiengesellschaft (OMV), a leading global integrated oil, gas and chemicals firm, have announced pivotal progress in the formation of Borouge Group International AG – the soon-to-be global fourth-largest polyolefin manufacturer. The milestone includes the formal signing of the asset usage agreement for the cutting-edge Borouge 4 (B4) integrated production complex, clearing a critical path for the landmark transaction to close by the end of March 2026, subject to customary closing conditions.

Borouge Group International AG is being created through the strategic merger of Borouge Plc and Borealis, coupled with the acquisition of Nova Chemicals, uniting three industry leaders to reshape the global polyolefin landscape. This transformative combination consolidates production, technology and market reach across three key regional hubs: Europe, the Middle East and North America, positioning the new entity as a dominant force in the global advanced polymers sector.

Borouge 4 (B4) Production Complex: Game-Changing Capacity for High-Grade Polyethylene

The newly built B4 integrated polyolefin production hub – a cornerstone asset of the expanded Borouge portfolio – boasts a 1.5 million metric tons per annum (mtpa) ethane cracker and a 1.4 million mtpa polyethylene production unit, marking one of the largest single-site polyolefin expansions in the Middle East. The first production line is scheduled to start up in Q1 2026, leveraging ADNOC and OMV’s proprietaryBorstar® technology to manufacture premium, high-performance polyethylene for packaging, infrastructure, automotive and advanced manufacturing end-markets.

ADNOC holds a 70% majority stake in the B4 complex, with OMV retaining the remaining 30% ownership. Once fully operational, the broader Borouge production base will solidify its status as the world’s largest single-site integrated polyolefin production facility, leveraging the UAE’s abundant, low-cost ethane feedstock to drive competitive, sustainable production.

Under the finalized asset usage agreement, Borouge Plc and the upcoming Borouge Group International AG will hold exclusive rights to operate the B4 plant, market its high-quality polyethylene products globally, and collect asset usage fees at cost, ensuring streamlined operations and optimized supply chain efficiency.

13.6 Million MTPA Rated Capacity: Securing Fourth-Largest Global Polyolefin Producer Ranking

With the B4 asset agreement in place, Borouge Group International AG will command a combined 13.6 million metric tons per annum (mtpa) of rated polyolefin capacity spanning its European, Middle Eastern and North American facilities. This massive production footprint elevates the merged entity to the rank of the world’s fourth-largest polyolefin producer, with projected sustained industry-leading profit margins and significant operational, commercial and technological synergies across the integrated portfolio.

The B4 complex will gradually ramp up to full production capacity throughout 2026, supplementing existing output to meet surging global demand for sustainable, high-performance polyolefin materials.

Tender Offer Timeline & Post-Transaction Ownership Structure

ADNOC and OMV have reaffirmed their previously announced tender offer strategy, a critical step in the long-term corporate restructuring. The proposed share exchange tender offer – which will convert all outstanding Borouge Plc shares into Borouge Group International AG shares – is targeted for completion in 2027. Until the tender offer closes, Borouge Group International AG will remain a private holding company, while Borouge Plc shares will continue trading on the Abu Dhabi Securities Exchange (ADX) as normal.

Following the full closing of the merger and acquisition transaction, ADNOC will transfer its entire stake in Borouge Group International AG to XRG, its wholly owned subsidiary. Going forward, XRG and OMV Aktiengesellschaft will operate as equal 50/50 joint controlling partners, fostering collaborative governance and aligning strategic priorities to capitalize on global polyolefin market growth.