Austrian energy firm OMV and Abu Dhabi National Oil Co will merge their polyolefin businesses to create a $60 billion chemicals joint venture, capping two years of talks, the companies said.
The JV will acquire Canada's Nova Chemicals Corp from Abu Dhabi's sovereign wealth fund Mubadala for $13.4 billion including debt to expand its business in North America, they said in separate statements on Monday and Tuesday.
Nova is a polyethylene producer with 2.6 million metric tons of polyethylene capacity and 4.2 million metric tons of ethylene capacity.
The JV, named Borouge Group International, will combine two joint ventures - Borealis, owned 75% by OMV and 25% by ADNOC - and Borouge, owned 54% by ADNOC and 36% by Borealis.
As part of the deal, OMV will inject 1.60 billion euros ($1.68 billion) in cash into the new company, which will be listed on the Abu Dhabi Securities Exchange, with a second listing on the Vienna Stock Exchange expected later.
ADNOC and OMV - which is partly owned by the Austrian government and counts Mubadala as its second-largest shareholder - will each own roughly 47% of the new JV, with the remainder being free float. Borouge shareholders will be offered shares in the venture.
Borouge Group International will look to raise up to $4 billion of primary capital in 2026, the companies said.
The companies expect the joint venture and the close of the deal for Nova to be completed in the first quarter of 2026, and annual cost savings of around $500 million.
The new company will be headquartered in Austria, and have a two-tier board structure with equal governance and voting rights between OMV and ADNOC.