ADNOC secures 24.9% stake in global energy firm OMV

Abu Dhabi National Oil Company (ADNOC) is the largest offshore oil and gas producer in the United Arab Emirates, contributing about half of Abu Dhabi’s total oil production capacity. On February 29, the Abu Dhabi Government-owned company announced it had bolstered its footprint in the chemicals sector with the completed acquisition of a 24.9% stake in OMV, from Mubadala Investment Company (Mubadala).

With over 20,000 employees and group sales revenues of EUR 62 billion (USD67.2 billion) in 2022, OMV is a global energy and chemicals business and one of Austria’s largest listed industrial companies. In a statement, Khaled Salmeen, executive director, Downstream Industry, Marketing & Trading at ADNOC, emphasised that the deal will allow ADNOC to accelerate its chemicals growth strategy, and “unlock further value and future growth opportunities for both companies.”

The deal strengthens a long-standing relationship between the ADNOC and OMV with ADNOC gaining an increased shareholding in their joint venture, Borouge, a company that provides value-creating polymer solutions.

Prior to the transaction, ADNOC owned a majority 54% of Borouge, with 36% owned by Borealis. Borealis, one of the world’s leading providers of advanced and sustainable polyolefin solutions, is 75% OMV-owned, with ADNOC holding the remaining shares.

In July 2023, ADNOC announced it had entered formal negotiations with OMV on the potential merger of Borouge and Borealis, potentially creating a new global heavyweight in the chemical and plastic sector, worth an estimated EUR30 billion (USD32.5 billion). According to the press release, open-ended negotiations on a combined entity will continue following the acquisition. The strategic investment in OMV will unlock significant growth opportunities in the company’s chemical portfolio, at Borouge in particular, says ADNOC.

Financial details of the deal were not disclosed. Austrian independent holding company Österreichische Beteiligungs AG (ÖBAG) is a 31.5% shareholder in OMV, with the remaining share capital in free float. ADNOC plans to nominate two representatives to the OMV Supervisory Board in the near future.