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Abu Dhabi and Austria’s OMV (OTCPK:OMVJF) (OTCPK:OMVKY) are exploring a combination of Borouge and Borealis to create a chemicals and plastics company worth more than $30B, Bloomberg reported Tuesday.
The parties are discussing the potential valuation and ownership structure of a combined entity and may reach the broad outlines for formal merger negotiations in the coming weeks, according to the report.
Borealis is 75% owned by OMV (OTCPK:OMVJF) (OTCPK:OMVKY), with the rest held by Abu Dhabi National Oil Co., while Borouge is a partnership between Adnoc and Borealis.
The potential deal would fit in a wider plan by the United Arab Emirates to attract investment and technology as well as build new industries and manufacturing capabilities, the report said.
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