ADNOC Realigns OMV And Borouge Stakes Under XRG

(MENAFN- The Arabian Post) Arabian Post Staff -Dubai

ADNOC will shift its 24.9 per cent holding in Austrian oil‐and‐gas group OMV AG into XRG P. J. S. C, the UAE state oil giant's $80 billion lower‐carbon energy and chemicals investment vehicle launched last November. The move aligns with ADNOC's intent to centralise its international growth assets within XRG's structure.

The shareholding transfer, subject to regulatory approval, follows ADNOC's acquisition of the OMV stake from Mubadala in December 2022. In tandem, upon the completion of the proposed merger forming Borouge Group International -a polyolefins powerhouse valued at $60 billion-ADNOC's resulting 46.94 per cent BGI stake will also be held by XRG.

The BGI framework merges OMV's 75 per cent‐owned Borealis with ADNOC's 54 per cent Borouge, and incorporates Nova Chemicals, securing the group's position among the world's top four polyolefins producers. OMV and ADNOC each will control approximately 46.94 per cent, with the remaining 6 per cent free‐float pending UAE Securities and Commodities Authority consent.

Khaled Salmeen, ADNOC's downstream chief, described the move as a logical next step following the $60 billion chemicals merger, reinforcing the energy transition and investment diversification strategy. ADNOC's transfer of both its OMV holding and BGI stake into XRG reflects its ambition to streamline governance and position XRG at the core of its international chemicals and low‐carbon energy agenda.

XRG, backed by global figures including former BP chief Bernard Looney and Blackstone's Jon Gray, aims to build a top‐five global chemicals platform, while expanding gas, LNG, and low‐carbon energy capacity to 20–25 million tonnes annually by 2035. The unit is also said to be exploring an international listing in London or New York within the next five years.

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Investors are watching for regulatory clearances across multiple jurisdictions-Austria, the UAE, and EU competition authorities-before finalising both the OMV share transfer and the formation of BGI. The new polyolefins entity is projected to deliver $500 million of annual cost synergies within three years post-merger.

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