Borealis And Borouge Merger And Nova Chemicals-Related Acquisition Expected To Close By End Of Q1 2026

According to Alfred Stern, CEO of OMV, the parent company of Borealis, the merger project between petrochemical joint ventures Borealis and Borouge, including the associated acquisition of Nova Chemicals of Canada, is expected to be completed simultaneously in the first quarter of 2026.

During the OMV Group's Q4 and full-year 2025 earnings analyst call on February 4th, Stern stated that the merger still requires regulatory approval and the fulfillment of other customary closing conditions. He noted, "At this stage, the remaining core work is to obtain the approvals that have not yet been granted." According to the parties involved in the transaction, this merger will establish a new joint enterprise, Borouge Group International (BGI), which will become the fourth-largest polyolefins company globally.

Stern said: "The closing of this transaction is progressing smoothly, and as previously disclosed, we expect to complete it in the first quarter of this year." He stated that OMV Group and Abu Dhabi National Oil Company (Adnoc), the shareholders of the two joint ventures, have obtained all necessary foreign direct investment approvals and have almost completed all other required regulatory licensing processes.

Stern also mentioned that before the acquisition of Nova Chemicals, the relevant companies had completed their financing efforts, raising a total of US$15.4 billion to ensure "sufficient liquidity to support this transaction." OMV Group stated that the Nova Chemicals acquisition will be financed through acquisition debt, with subsequent plans for debt refinancing in the capital markets.

OMV CFO Reinhard Florey stated in the earnings call that, assuming the Borealis transaction closes in Q1, the company expects Borealis to contribute "at least $1 billion" in net dividends to OMV for the full year 2026.

He added that the selection and negotiation process for the executive board and management team of Borouge International Group is nearing completion, and nominations and announcements related to the supervisory board will be released in due course.

Stern stated: "Abu Dhabi National Oil Company (Adnoc), OMV Group, Borealis, Nordic Chemicals, and Nova Chemicals have worked closely together to develop a detailed plan for the first day of closing and subsequent operations. From the beginning of the integration work, we established a comprehensive coordination framework, striving to achieve synergistic benefits exceeding $500 million."

The merger and the binding agreement to acquire Nova Chemicals from Mubadala Investment Company for USD 13.4 billion were announced in March 2025. OMV Group will inject EUR 1.6 billion into this new Austria-headquartered joint venture. Subsequently, OMV and ADNOC will each hold a 46.94% stake in Borouge International Group, establishing an equal partnership within BGI. The new group will also establish its regional headquarters in Abu Dhabi and plans for a dual listing on the Abu Dhabi Securities Exchange and the Vienna Stock Exchange.