Rizwan Ullah Wazir
ADNOC, the national oil corporation of Abu Dhabi, and OMV, the largest oil and gas company in Austria, are considering merging their two businesses, Borouge and Borealis, Bloomberg reported, citing persons familiar with the talks.
They claimed that formal merger negotiations may start within the next two weeks, and that the owners were currently debating the valuation of the businesses and the ownership structure of the new company. The contract could be delayed or fail completely, according to the agency's interlocutors, who also noted that conversations had been ongoing over the previous few months with varying degrees of success.
Borealis, with its headquarters in Vienna, is 75% owned by OMV and 25% by ADNOC. Borouge, a partnership between Borealis and ADNOC, is estimated to be worth $22 billion. Borouge, a manufacturer of plastics for both industrial and consumer uses, went public last year and raised $2 billion in an IPO. OMV, one of the biggest oil and gas firms in Western Europe, is currently undergoing a transformation after announcing ambitions to focus on recycling and green technologies last year, according to the agency.
source: bloomberg.com
They claimed that formal merger negotiations may start within the next two weeks, and that the owners were currently debating the valuation of the businesses and the ownership structure of the new company. The contract could be delayed or fail completely, according to the agency's interlocutors, who also noted that conversations had been ongoing over the previous few months with varying degrees of success.
Borealis, with its headquarters in Vienna, is 75% owned by OMV and 25% by ADNOC. Borouge, a partnership between Borealis and ADNOC, is estimated to be worth $22 billion. Borouge, a manufacturer of plastics for both industrial and consumer uses, went public last year and raised $2 billion in an IPO. OMV, one of the biggest oil and gas firms in Western Europe, is currently undergoing a transformation after announcing ambitions to focus on recycling and green technologies last year, according to the agency.
source: bloomberg.com