Austria's OMV AG OMVKY OMVJF is in talks with Abu Dhabi National Oil Co. (ADNOC) to combine the companies, Borouge Plc and Borealis AG, to form a chemicals and plastics company worth over $30 billion.
The firms are discussing the potential valuation and ownership structure of a combined entity and may reach the formal merger terms in the coming weeks, Bloomberg reported.
OMV owns 75% of Borealis is 75%, while ADNOC holds the remaining.
Meanwhile, Borouge is an Abu Dhabi-listed company formed by the partnership between ADNOC and Borealis, with a market value of around $22 billion.
As per the report, the two parties are considering a possible valuation of about $10 billion for Borealis (including its Borouge stake).
The overall valuation of the combined entity may exceed $30 billion (including potential synergies), as per the people familiar with the matter.
Last month, OMV sold OMV Slovenia (including the filling stations and wholesale business) in a bid to become a sustainable and net-zero emissions company by 2050.
As of March 31, 2023, OMV's cash and cash equivalents stood at €9.5 billion.
Price Action: OMV shares closed higher by 3.97% at $43.96 on Monday.
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