Austria’s OMV and ADNOC resume talks over business merger

Austrian oil, gas, and petrochemical company OMV and the state-owned Abu Dhabi National Oil Company (ADNOC) resume talks to agree final terms of a deal to create a possible merger of their businesses, media sources revealed. When the merger is done, it will create a chemicals group with more than $20 billion in combined yearly sales, sources said.

The sources close to the matter reported that there are still terms to work on, and the companies plan to resume talks as soon as possible.

Back in July 2023, the two companies started talks to merge Borouge and Borealis into a new chemical entity. OMV controls a 75% stake in Borealis, while the remaining stake of 25% belongs to ADNOC. Meanwhile, Borouge is a joint venture between ADNOC and Borealis.

OMV and ADNOC neared signing a deal in December, sources claimed. No final decision has been taken yet, and the two sides continue their discussions to agree on proposed terms including a provision for job guarantees in Austria, a requirement for a Vienna listing and an Austrian chairman of the new company, sources informed.

In October, the Austrian company’s CEO Alfred Stern said the company would be listed on the stock exchange while a capital infusion to ensure both parties have the same equity share in the new company was also under discussion, Reuters reported in December.