Abu Dhabi National Oil Co. (ADNOC) and Austrian energy producer OMV AG are planning to acquire Canada’s Nova Chemicals Corp. as part of their efforts to form a major global chemical company.
The two firms, which hold cross-shareholdings in key chemical businesses, aim to integrate Nova Chemicals into their merged entity.
Ongoing Talks with Mubadala Investment Co.
ADNOC and OMV have confirmed ‘constructive and positive’ discussions regarding the merger of their chemical units, where both are stakeholders.
They are also in negotiations with Abu Dhabi’s sovereign wealth fund, Mubadala Investment Co., which currently owns Nova Chemicals, to finalize the acquisition.
A $30 Billion Chemical Powerhouse in the Making
The proposed merger would combine UAE-listed Borouge Plc with European chemicals producer Borealis AG, forming a chemical and plastics leader valued at approximately €30 billion.
If the deal to acquire Nova Chemicals is successful, the company’s assets will be rolled into this combined entity, strengthening its global presence.
Expanding Footprint in North America
The acquisition of Nova Chemicals would significantly enhance the new entity’s North American operations.
The company has plants in Canada and the U.S., including a key facility in Louisiana. The deal would provide access to abundant natural gas supplies. It would also expand the company’s footprint in a crucial market.
Focus on Chemicals and Natural Gas for Future Growth
ADNOC and OMV focus on growth in the chemicals and natural gas sectors. Their goal is to meet the rising energy demand. Additionally, they aim to supply plastics for consumer goods.
As reported by energyconnects.com, the move aligns with their broader strategy to expand amid the ongoing energy transition.
