Abu Dhabi National Oil Company (ADNOC) has confirmed that it is in advanced negotiations with Austria’s OMV to establish a groundbreaking global polyolefins joint venture. The proposed merger would combine ADNOC’s Borouge and OMV’s Borealis into a powerful new entity, creating one of the world’s foremost players in the polyolefins sector. This alliance is set to merge Borealis’ expertise in chemicals and polymers with Borouge’s leading position in polyolefins, alongside Canada’s Nova Chemicals, further solidifying their combined presence in the global market.

In a statement released on Saturday, ADNOC stated that talks between the two companies are progressing in a “constructive and positive manner.” The strategic merger would result in a major consolidation of polyolefin production, positioning the new group as a global leader in the manufacturing of polyethylene and polypropylene, key materials widely used across industries such as packaging, automotive, construction, and healthcare.

Polyolefins are integral to numerous sectors due to their versatility, durability, and cost-effectiveness. As the global demand for these materials continues to rise—driven by trends like population growth, urbanization, and increasing e-commerce—industry giants like ADNOC and OMV are seeking to leverage their combined capabilities to better meet these demands. By pooling resources, technology, and market access, the new venture would be well-positioned to take advantage of expanding opportunities in high-growth regions such as Asia, the Middle East, and North America.

While the merger promises to deliver enhanced scale and competitive advantage, the deal remains subject to several critical conditions. ADNOC clarified that the transaction is dependent on securing necessary agreements, regulatory approvals, and customary conditions. As with any large-scale merger in a highly regulated sector, the deal will likely undergo thorough scrutiny from regulatory bodies to ensure compliance with antitrust and market competition laws.

The formation of this new polyolefins powerhouse also aligns with ADNOC’s broader diversification strategy, as the company continues to seek new growth opportunities outside of its core upstream oil and gas operations. The move is part of ADNOC’s long-term vision to expand its petrochemical footprint and strengthen its position as a leading player in the global chemicals sector. For OMV, this partnership would further bolster its chemicals portfolio, offering deeper access to key markets in the Middle East and Asia, and reinforcing its competitive standing in the global polyolefins space.

Industry insiders view this merger as a significant step in reshaping the polyolefins landscape. By combining their complementary strengths, ADNOC and OMV could create a more agile and resilient entity that can better navigate the challenges of a rapidly evolving market. Should the deal be approved, it would mark a transformative moment for the global polyolefins industry, positioning the new joint venture as a formidable force in the chemicals market for years to come.