Your Weekly Plastics News Brief
Welcome to The Plastics Report, your weekly update on the latest news and trends in the plastics industry.
?? Want more industry news? Sign up for PlasticsToday's flagship newsletter to receive an enhanced edition of The Plastics Report directly to your inbox.
Let's dive in...
$60-billion Adnoc-OMV-Nova Chemicals Deal Creates Global Polyolefins Powerhouse
Abu Dhabi National Oil Company (Adnoc) and Austria-based petrochemicals company OMV announced yesterday that they will merge their polyolefin businesses —?Borealis and Borouge, respectively —?under the Borouge Group International entity, which, in turn, will acquire Canada’s Nova Chemicals Corp. The resulting $60-billion business will be the fourth-largest polyolefins producer in the world, as measured by nameplate capacity, according to the news release.
Borouge Group International will be headquartered in Vienna, with regional headquarters in Abu Dhabi, and be listed on the Abu Dhabi Securities Exchange, with a second listing expected later on the Vienna Stock Exchange, reported Seeking Alpha. Borouge Group International will retain key corporate hubs in Calgary, Pittsburgh, and Singapore.?
Borouge Group International will be jointly controlled as an equal partnership between Adnoc (46.94%) and Austria-based OMV (46.94%), with OMV injecting $1.6 billion cash into the consolidated entity to equalize shareholding, added the news release.
$13.4-billion acquisition of Nova Chemicals
As part of the deal, Adnoc said it has entered into a share purchase agreement with Nova Chemicals Holdings GmbH, an indirectly wholly owned company of Mubadala Investment Company P.J.S.C., for 100% of Nova Chemicals Corp., which boasts 2.6 million metric tons of polyethylene capacity and 4.2 million metric tons of ethylene capacity. The $13.4-billion acquisition, including debt, will further expand the group’s footprint in North America and create a new $60+ billion global polyolefins champion, set to be the world’s fourth largest, according to Adnoc.
Borouge Group International will combine the highly complementary strengths of three polyolefin leaders, including competitive feedstock, differentiated and premium quality product offering, direct access to growth markets, world-class technologies, and leading circularity credentials, said the news release. With an extensive production footprint, innovation centers, and global sales network, the group is expected to have a combined annual polyolefins nameplate production capacity of approximately 13.6 million tons, including current organic polyolefin growth projects.
Deal "future-proofs" Adnoc
“These transformative transactions mark a pivotal milestone in Adnoc’s global chemicals strategy as we deliver on our international growth mandate,” said Dr. Sultan Ahmed Al Jaber, Adnoc managing director and group CEO, in a prepared statement. “Building on our 25-year strategic partnership with OMV, we will create a new industry powerhouse, with a portfolio of premium products, cutting-edge technologies, and worldwide market access. The visionary combination of Borouge and Borealis and acquisition of Nova Chemicals, further future-proofs Adnoc and solidifies Abu Dhabi’s status as a leader in the chemicals sector, as we seek to meet the growing global demand for chemicals and associated products, while driving value creation and growth opportunities for our shareholders,” he added.
Adnoc also noted that Borouge Group International will target a leadership position in circular solutions building upon initiatives at Borealis, Borouge, and Nova. Borealis and Borouge have both committed to reaching Scope 1 and 2 net zero emission targets before 2050, said the news release. Borouge Group International’s sustainability strategy and targets will be rolled out after completion of the deal, including the acquisition of Nova, which is expected in the first quarter of 2026.
Upon its completion, Adnoc said its stake in Borouge Group International will be transferred to the XRG Global Chemicals Platform. Adnoc launched XRG in November of last year, describing it at the time as a “groundbreaking international lower-carbon energy and chemicals investment company, with an enterprise value of over $80 billion.”
Recommended Reads ??
How Steel and Aluminum Tariffs Will Impact the US Plastics Industry
Prepare for Plastic Legislation or Face Financial Losses, Warns Report
Researchers Accidentally Discover Surprisingly Simple Way to Recycle PMMA
Resin Price Report: Prices Inch Higher Amid Uncertain Near-term Demand
PE and PP resin prices rose another half cent in mid-February at the Plastics Exchange trading desk.
Black Plastic Phobia: The Zombie Lie That Just Won’t Die
Upcoming Industry Events ??
MD&M Plastics East | May 20–22, 2025 | Jacob K. Javits Convention Center, New York, NY
MD&M Plastics Midwest | October 21-22 2025 | Minneapolis Convention Center Minneapolis, MN
MD&M Plastics South | May 20-21 2026 | Charlotte Convention Center Charlotte, NC
PLAST-EX | October 21- 23, 2025 | Toronto Congress Centre Toronto, Ontario, Canada
EXPOPLAST | November 11–12, 2026 Palais des congrès de Montréal Montréal, Québec, Canada