Breakthrough! 13.6-million-ton new giant emerges as world’s fourth-largest polyolefin producer, reshaping industry landscape

On March 31, 2026, OMV AG and ADNOC’s international investment arm, XRG, officially announced the formation of Borouge Group International. This new industry giant, formed through the merger of Borouge and Borealis and the acquisition of NOVA Chemicals, will…1360 ten thousand tons / the total polyolefin production capacity, officially becomingThe world’s fourth-largest polyolefin producerThe global polyolefin industry landscape is undergoing a historic restructuring.

I. The Establishment Process of Borealis International: Two Years of Negotiations Finally Achieved, 2025-2026Key Node Full Overview

The birth of Borouge International was not achieved overnight, but rather the strategic outcome of two years of in-depth negotiations, multiple rounds of regulatory approvals, and asset integration between OMV and ADNOC. The core milestones for 2025-2026 are as follows:

1. 2025 Year 3Month: Agreement signing and blueprint finalization (starting point)

On March 4, 2025, ADNOC and OMV officially signed.Binding Framework Agreementannounced the merger of its Borouge and Borealis to form Borouge International Group (BGI), with the new company to134 billion U.S. dollarsAcquire Nova Chemicals (Canada).

Equity Structure: XRG (ADNOC's international investment arm) and OMV each hold shares in Borouge International50% jointly controlling the new company; originally planned for both parties to hold 46.94% each, with the remaining 6.12% freely tradable, but ultimately adjusted to full 50% ownership by each party.

Source: Borouge

Strategic goal: To buildValue exceeds 600 billion USDA global leader in polyolefins, integrating the three core advantages of European technology, Middle Eastern raw materials, and the North American market.

Transaction expectation: Plan to complete full integration in Q1 2026, requiring antitrust regulatory approvals from multiple countries including the UAE, Austria, Canada, etc., Borouge.

2. 2025 Year Q2-Q4Regulatory advancement, detailed implementation

Starting from the second quarter of 2025, both parties will initiate the approval application to the Securities and Commodities Authority (SCA) of the UAE, the Abu Dhabi Securities Exchange (ADX), and the regulatory bodies in the EU and Canada, while simultaneously advancing asset valuation, debt consolidation, and personnel structure planning for Borouge.

Throughout 2025, Borouge and Borealis will maintain independent operations, but will simultaneously initiate preparations for business collaboration. The Borouge-4 project will enter the final construction phase, and OMV will inject into the new company.16 billion eurosCash to balance the equity value of Borouge.

By the end of 2025, core regulatory approvals are gradually being approved, and the transaction is entering the final countdown. Both parties have confirmed that the headquarters of the merged company will be located in Austria.Regional headquarters established in Vienna, Austria, and Abu Dhabi, UAE.
3. 2026 Years 1–3Month: Intensive efforts for the final push, asset transfer

2026 Year 1 Integration is accelerating: Borouge, Borealis, and NOVA Chemicals have completed business alignment, and the new company’s management team has been preliminarily established; full closing is expected by the end of March.

2026 Year 3June 19 ADNOC and OMV sign a deal - 4（B4Production Complex Asset Usage AgreementIt is confirmed that ADNOC holds a 70% stake and OMV holds a 30% stake in the B4 project, which will be integrated into Borouge International's operations upon commissioning.

2026 Year 3Month 26 The two parties announced the executive team of BORO, with Sultan Ahmed Al Jaber, CEO of ADNOC Group, serving as chairman of the board of supervisors, completing the establishment of the management team.

2026 Year 3Month 31 Formally announced.Bolu International Group has been successfully established.Meanwhile, Borouge 4 project commenced production, with ethylene capacity of 1.5 million tonnes per year and polyethylene capacity of 1.4 million tonnes per year, bringing its total capacity to 13.6 million tonnes per year—officially establishing Borouge as the world’s fourth-largest polyolefins producer.

II. Core Advantages of the New Giant: Spanning Three Continents, Technology +Cost Dual Drive

The newly formed Borouge International Group has achieved comprehensive global coverage, establishing an integrated global network of "technology R&D - production and manufacturing - market sales." It is reported that the group's headquarters is located in Vienna, Austria, with a regional headquarters in Abu Dhabi, UAE. Additionally, multiple operation centers are set up in the three core markets of North America, Europe, and Asia, balancing regional market responsiveness with global collaborative development. Moreover, it has laid out six innovation centers in Austria, the UAE, Canada, Finland, Sweden, and China, gathering R&D forces to provide a solid foundation for technological breakthroughs and product innovations, further strengthening its global integrated operational capabilities.

A well-structured production capacity allows Borouge International to precisely meet market demands. The group has achieved full coverage of polyethylene and polypropylene categories, with high-end specialty materials accounting for over 40%. The products are widely suitable for high-growth sectors such as new energy vehicles, premium packaging, medical and health, and 5G materials. Previously, it successfully supplied advanced polyolefin materials for the all-new flagship SUV of GIMMEC, demonstrating its strength in the high-end materials field and injecting sustained momentum into its performance growth.

Image source: Borouge

III. Global Polyolefin Competition Enters ""Battle of the Four Strongest"New Era

The establishment of BORO International has completely changed the global polyolefins "three giants" situation, forming a new pattern.LyondellBasellSABICTosoh, Braskem InternationalThe competitive landscape is led by the top four. The new giant, with the triple advantages of low-cost raw materials from the Middle East, high-end technology from Europe, and a mature market in North America, will directly compete with the TOP3 in the three core markets of Asia (especially China), Europe, and North America, driving industry capacity expansion, technological upgrades, and intensifying cost competition.

Meanwhile, this integration also marksMiddle East Petrochemical Capital European Chemical Engineering TechnologyNew trend of deep integration: the global polyolefin industry will exhibit…Middle East drives low-cost capacity expansion, Europe and the U.S. lead in high-end technology, and Asia fuels demand-driven growth.The tripartite confrontation has further increased the concentration of the industry, continuously compressing the survival space for small and medium-sized enterprises.

Editor: Lily

Sources: Borealis, China Chemical Industry News, etc.