OMV and ADNOC are poised to finalize a landmark merger in the coming days, creating Borouge Group International (BGI), a global petrochemicals giant headquartered in Vienna. The deal marks a significant moment in Austrian industrial history, with the new company set to become the world’s fourth-largest polyolefins producer with a capacity of 13.6 million tonnes. OMV and Abu Dhabi each hold a 47 percent stake in the venture.
BGI is projected to be valued at over 60 billion euros following further acquisitions, signaling a major consolidation within the petrochemical industry. The formation of BGI comes as companies seek to capitalize on economies of scale and navigate a complex global market.
Industry and political circles are closely watching the selection process for key leadership positions within the new organization.
The supervisory board will be comprised of five representatives from OMV and five from ADNOC, as well as from XRG, the investment company where ADNOC consolidates its chemicals and plastics business. Abu Dhabi is bringing the Borouge Group, the acquired German chemical company Covestro, and its 24.9 percent stake in OMV into XRG.
Georg Knill, President of the Federation of Austrian Industries (Industriellenvereinigung), is expected to be appointed to the supervisory board on the Austrian side. This appointment reportedly has the backing of Austrian Minister of Economic Affairs Wolfgang Hattmannsdorfer. While not a petrochemical specialist, Knill is known as a strong international networker, with frequent engagement from foreign ministers and heads of government visiting Austria.
“The Schwarzenbergplatz is a hub for international contacts, both politicians and major investors,” an insider told KURIER. Edith Hlawati, currently the sole board member of the Austrian State Holding Company (ÖBAG), is also expected to join the supervisory board.
On the Abu Dhabi side, Rainer Seele, the former CEO of OMV, is expected to seize a seat on the supervisory board. Seele currently serves as President of Chemicals at XRG and is a trusted advisor to ADNOC CEO and Minister of Industry Sultan Al Jaber. Yet, reports indicate that Seele will not be joining the OMV supervisory board, a development that has been met with relief among employees.
The mega-deal’s timeline is being overshadowed by the ongoing conflict in the Middle East. BGI has production sites in Europe, the United States, and the Middle East, with ADNOC facilities reportedly targeted in Iranian attacks, according to Reuters.
The planned initial public offering, including a listing in Vienna, has been postponed to 2027. OMV’s anticipated dividend of $500 million for 2026 will be halved initially. OMV CEO Alfred Stern cited unfavorable conditions in the chemicals market and overcapacity in Asia as the reasons for these adjustments during the CERAWeek energy conference in Houston, Texas, but did not attribute the changes to the crisis in the Middle East.
Stern acknowledged the region’s importance as a source of affordable raw materials and the necessity of open shipping routes for exports. He stated that the impact of the Iran conflict depends on its duration, noting that, unlike the war in Ukraine, this crisis is causing a genuine physical disruption to supply chains. “The current crisis in the Middle East is a real physical interruption of supply chains,” Stern said.
Stern indicated that the duration of the Iran conflict will be critical, adding, “If Here’s limited in time, it will likely have less impact.” He also mentioned, according to Reuters, continued interest in projects in Libya, where OMV and the National Oil Corporation (NOC) reported a new oil field discovery in the Sirte Basin last year. Libya aims to expand its natural gas production over the next five years.
On March 12, 2026, OMV and ADNOC announced strong progress towards the formation of Borouge Group International AG, including the signing of an Asset Usage Agreement for the Borouge 4 (B4) production complex, as detailed in a press release. The transaction is expected to close by the end of March 2026, subject to customary conditions. B4, a new integrated polyolefins production complex, features a 1.5 million tonne ethane cracker and 1.4 million tonnes of polyethylene capacity, with the first plant expected to start up this quarter. The complex utilizes Borstar® technology to produce advanced polyethylene and is 70% owned by ADNOC and 30% by OMV.
