Adnoc to buy 25 per cent stake in petrochemical giant Borealis

Abu Dhabi National Oil Company (Adnoc), and Mubadala Investment Company (Mubadala), on Friday announced a strategic transaction involving Borealis AG (Borealis), one of Europe’s leading petrochemical companies.

Under this agreement, Adnoc will acquire a 25 per cent shareholding in Borealis from Mubadala. Upon completion of the transaction, which is subject to customary closing conditions and regulatory approvals, Borealis will be owned 25 per cent by Adnoc and 75 per cent by OMV, an Austrian multi-national integrated oil, gas and petrochemical company listed on the Vienna Stock Exchange.

Borealis is a leading global provider of advanced and circular polyolefin solutions and a European market leader in base chemicals, fertilisers and mechanical recycling of plastics.

The investment in Borealis extends Adnoc’s international footprint in the fast-growing chemicals and petrochemical sector, unlocking new opportunities in key markets where Borealis operates, particularly in Europe and the Americas.

This transaction marks another important milestone as Adnoc accelerates the delivery of its Downstream and Industrial growth programme, further expanding the company’s long-standing partnership with Borealis.

Commenting on the transaction, Dr Sultan Bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of the Abu Dhabi National Oil Company (Adnoc), said, “Globally, the chemicals and petrochemical sector is poised for significant consumer-led growth in the decades ahead.”

“Adnoc is therefore delighted to be making this strategic investment for a 25 per cent stake in Borealis, a world-leading petrochemicals company, with whom we have already collaborated in a close and trusted partnership over two decades through our jointly held Abu Dhabi-based polyolefins company Borouge. Alongside OMV, Adnoc will be a co-shareholder in Borealis, with this investment giving further impetus to our local and international petrochemical and industrial growth programme and accelerating our transformation into an integrated and global energy player.”

Adnoc is well-positioned to capitalise on growth opportunities in the chemicals and petrochemical sector, building on its world-class refining and petrochemicals facilities in Al Ruwais Industrial City, Abu Dhabi.

The Company has already embarked on a major expansion drive, including the recently announced Borouge 4 complex and the TA’ZIZ Industrial Chemicals Zone in Ruwais.

Khaldoon Khalifa Al Mubarak, Managing Director and Group CEO at Mubadala, said, “We have partnered with OMV and Adnoc for two decades to build Borealis into a global champion. Throughout this time, we have been proud of the company’s growth, innovation and continuing success in sustainability. Now the time is right for OMV and Adnoc to take this partnership to the next level capitalising on synergies with the wider Adnoc portfolio.”

This investment represents the latest milestone in Adnoc’s strategic growth and investment approach and reinforces Adnoc’s role as a catalyst for responsible and sustainable investment and value creation for Abu Dhabi and the UAE.

Meanwhile Abu Dhabi Chemicals Derivatives Company (TA’ZIZ) and Reliance Industries Limited (RIL), have signed the formal Shareholder Agreement for the TA’ZIZ EDC & PVC project recently.

Reliance is India’s largest diversified conglomerate and a strategic partner with Abu Dhabi National Oil Company (Adnoc) and ADQ, an Abu Dhabi-based investment and holding company, in TA’ZIZ EDC & PVC, a world-scale chemicals development at the TA’ZIZ Industrial Chemicals Zone in Ruwais.

The TA’ZIZ EDC & PVC joint venture will construct and operate a Chlor-Alkali, Ethylene Dichloride (EDC) and Polyvinyl Chloride (PVC) production facility, with a total investment of over $2 billion (Dhs7.34 billion). These chemicals will be produced in the UAE for the first time, unlocking new revenue streams and opportunities for local manufacturers to “Make it in the Emirates”. The formal shareholder agreement was signed by senior executives during a visit of Mukesh Ambani, Chairman and Managing Director of Reliance, to ADNOC headquarters. During the visit, Ambani met with Dr Sultan Bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of Adnoc, and discussed opportunities for partnership and growth in Upstream, new energies and decarbonisation across the hydrocarbon value chain.

Dr Al Jaber and Ambani exchanged a signed framework agreement between Adnoc and Reliance to explore collaboration in the exploration, development and production of conventional and unconventional resources in Abu Dhabi as well as in decarbonisation of operations, including in carbon dioxide (CO2) sequestration.

WAM