Energy News — OMV & ADNOC Reach Final Terms On $20 Billion Merger Deal For Petrochemicals
In a big news story for the global petrochemicals market, Reuters reported that Austria’s OMV and the United Arab Emirates’ ADNOC have reached final terms for the $20 billion deal to combine forces in a merger of petrochemical assets, including each companies’ stakes in Borealis and Borouge.
According to statements given to Reuters, the OMV-ADNOC merger deal seeks to make “equal partners under a jointly controlled, listed platform for potential growth acquisitions to create a global polyolefin company”.
Both OMV and ADNOC are major players in the European and Asian energy markets. It’s no surprise that the two companies seek to enhance their market share over two of the world’s highest growth areas for energy consumption.
Chairman of the Board and CEO of OMV AG Alfred Stern originally commented that this merger was in line with the Austrian company’s stated acquisition criteria and capital allocation framework while calling the partnership “one of the possible catalysts to achieve OMV’s Strategy 2030.” You can read the full details on OMV’s official website in the link above.
In November of last year, OMV made an announcement the company would join with Vienna Energy to explore geothermal energy developments for the European energy transition strategy.
For example, this joint venture agreement has already allowed for a new research project located in the eastern Vienna Basin knowns as “GeoTief Wien.” Read all about this geothermal energy project in the link above.
It will interesting to see how this OMV’s push into renewable energies and petrochemicals plays out in the long-term scenarios over Europe’s energy transition strategy, as well as the Net Zero pledge by many countries to cut down to zero-emissions by 2050 in a scenario called Net-Zero Emissions (NZE) 2050.
But, in the short-term, there’s the looming spectre of Russian energy supplies, which seem to be finding their way back into European markets regardless of US and EU sanctions for the war in Ukraine. This will continue to be the focal point of geopolitical shifts between the US, EU and Russia.
Read more about the Energy & Climate Change news updates in the publication Areas & Producers.
