ÖBAG welcomes creation of new Austrian global leader in chemicals

OMV and ADNOC agree on group structure, expansion into American market and commitment to Austria

The announcement by OMV AG and Abu Dhabi National Oil Company (ADNOC) to establish a global market leader in the polyolefin segment is “very good news for Austria’s economy” said Edith Hlawati. The decision to expand into the North American market through the joint acquisition of NOVA Chemicals highlights the importance of this step for industrial policy in Austria and for OMV.”

The new company based in Austria will emerge from the combination of Borealis, Borogue and NOVA, making it one of the world’s four largest polyolefin companies with a market capitalization of almost EUR 40 billion. In this context, the partners to the transaction also agreed on key matters for Austria’s industrial sector.

“I welcome the agreement that was achieved after some very intense negotiations by our investee, OMV, and ADNOC on the establishment of a market leader in the polyolefin segment. From the start, it was important to us at ÖBAG to negotiate a set of conditions that not only secure the headquarters of the new OMV subsidiary in Austria, but also create additional high-quality jobs in research and development, and support the Austrian capital market,” explained Edith Hlawati.  The two contractual partners also agreed, for example, to apply for a dual listing in Vienna and Abu Dhabi.

OMV, as one of Austria’s heavyweights in the industrial sector and an integrated group, will continue to expand in the field of chemicals outside of the new subsidiary and also pursue its strategy outside of the polyolefin sector. The company has the financial resources it needs to pursue this goal. Hlawati described ADNOC’s entry into the 30-year-old syndicate with ÖBAG almost one year ago as a sound and excellent foundation for this move. “The syndicate guarantees stability for OMV and ensures that the two major shareholders coordinate their actions closely and in the interest of both parties,” said Hlawati.