ADNOC realigns OMV and Borouge stakes under XRG
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.
ADVERTISEMENT
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.
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Business
43 minutes ago
- Arabian Business
European Commission to investigate ADNOC's acquisition of Covestro
The proposed US$15 billion acquisition of German chemical company Covestro by XRG, the international investment arm of Abu Dhabi National Oil Company (ADNOC) – the biggest acquisition ever by a Gulf company in Europe – will be delayed as the deal is now being investigated by the European Commission. The EC has opened an in-depth investigation to assess, under the Foreign Subsidies Regulation (FSR), the acquisition by ADNOC/XRG. The Commission said they were concerned that foreign subsidies granted by the UAE to the state-owned ADNOC 'could distort the EU internal market'. Covestro shareholders had given their go-ahead to XRG 's proposed deal in December 2024. EU probes ADNOC's Covestro takeover The Commission said that 'opening of an in-depth investigation does not prejudge the outcome of the investigation'. If the European Commission probe, which has a deadline of December 2 to issue a ruling, concludes that rules have been violated, the takeover could eventually be blocked unless ADNOC makes significant concessions. The Commission's preliminary investigation indicates that ADNOC and Covestro may receive foreign subsidies. The possible foreign subsidies include an unlimited guarantee from the UAE, as well as a committed capital increase by ADNOC into Covestro. The preliminary investigation felt that the foreign subsidies may have enabled ADNOC to acquire Covestro at a valuation and financial terms that would not be in line with market conditions, and which could not have been matched by unsubsidised investors. During its in-depth investigation, the Commission said it would assess… Whether the foreign subsidies that ADNOC may have received distorted the outcome of the acquisition process. ADNOC may have offered an unusually high price and other favourable conditions, which may have deterred other investors from making an offer. Whether such potential foreign subsidies may lead to negative effects in the internal market with respect to the merged entity's activities after the transaction.
The National
7 hours ago
- The National
How museums can widen their definitions of sustainability
Recently, the expanding renewable energy and AI investments by Adnoc, committing $440 billion to the US, demonstrated a global dedication to achieving net-zero emissions by 2050. This bold initiative not only aims to strengthen strategic partnerships, but exemplifies a commitment to affordable clean energy, industry innovation and climate action – which are core UN Sustainable Development Goals. By leading on climate solutions beyond its borders, the UAE highlights its resolve to guide others towards a sustainable path. Sustainability, however, necessitates universal participation. It calls all sectors to action, including those less directly tied to environmental leadership. As cultural institutions spread across developing regions, their duty to ensure sustainability expands beyond energy efficiency alone. Museums influence communities and preserve cultural diversity, often challenged by globalisation and climate change. Too often, sustainability in the museum sector is narrowly defined by operational tweaks: paperless tickets, energy-saving heating, ventilation and air conditioning systems, recycling bins in visitor cafes. While these are critical starting points, they only scratch the surface. True sustainability is about building museums that can endure – not just physically, but socially, culturally and ethically. Museums hold profound social power, from being important national spaces to grassroots community centres. They shape discourse, decide which histories are honoured and which stories told. Such influence carries responsibility. Museums must recognise and embrace their agency to foster resilience and ensure relevance for generations to come. Grand achievements – mass audiences, high-profile exhibits, institutional prestige – often overshadow smaller commitments, such as community involvement and cultural endurance. The danger is that worthy initiatives risk losing out to visibility and spectacle. Where cultural infrastructure rapidly expands in the Middle East, balance matters critically. So how can flagship museums nourish the whole network, grassroots groups and local cultural centres that are closely engaging with communities? Cultural sustainability must extend to sustaining the work culture of people Museums in the UAE offer an instructive model, where long efforts promote availability, participation, and the use of museums as public spaces – not just visitor destinations but platforms for active cultural participation. Museums can and must amplify unheard voices, showcase diverse narratives and represent underrepresented communities. This activates sustainability. It ensures heritage remains relevant and available to all. Yet, inclusion must be at the heart of a museum. It cannot be an afterthought or temporary programme — it must inform hiring, programming and overall experiences. Museums must move from speaking of people to speaking with them, guaranteeing communities co-create their stories and have ownership of their representation. This demands internal sustainability too. Museum workers, from curators and educators to those in visitor services, must feel empowered and supported. As demands on staff increase, underpaid work and limited career growth undermine values of inclusion and sustainability that museums claim to uphold. Cultural sustainability must extend to sustaining the work culture of people. The urgency of this transformation is particularly evident in the Middle East and Asia, where young populations and fast-developing social landscapes demand that cultural institutions remain adaptable, relevant and responsive. Sustainability here is not just environmental, it's about sustaining trust, participation and spaces where people feel they belong. There are positive models emerging. In Sharjah, the museum authority has taken meaningful steps to remove financial barriers and provide inclusive educational experiences. In Singapore, the National Museum has successfully integrated sustainability into both its operations and its community-focused programmes, demonstrating that sustainability is most effective when it is both internal and external. Sustainability in this context is not merely environmental. It's about continuing to build trust in the community and continuing involvement where populations feel they fit in. But much work remains to be done. Museums must evolve into being facilitators, not gatekeepers, places where communities can genuinely shape and own cultural initiatives. Success should not be measured solely by how many visitors pass through the door, but by who participates, how deeply they engage and how long the impact lasts. Ultimately, the sustainability discussion must be comprehensive and wide reaching. It refers to reducing carbon footprints, yes, but it is also about continuing meaningful human connections, continuing cultural relevance, and ensuring that workplaces have and maintain gender balance and equity. If museums are to be leaders in such a future, they must fully embrace their part as agents of sustainable, inclusive reformation. The question is no longer whether museums should change, but whether they are prepared to do so.
Arabian Post
8 hours ago
- Arabian Post
EU Antitrust Probe Threatens ADNOC-Covestro Deal
Arabian Post Staff -Dubai Abu Dhabi National Oil Company faces significant challenges in its $17.2 billion bid for German chemicals company Covestro after the European Union's competition watchdog launched a full investigation into the acquisition. The deal, struck last October, was poised to be ADNOC's largest ever, as well as one of the most substantial foreign takeovers of a European Union-based company by a Gulf state. However, European regulators are concerned that the acquisition may distort the EU internal market due to potential subsidies granted by the United Arab Emirates to ADNOC, which could provide the state-owned oil giant with an unfair advantage. The European Commission's investigation, which was triggered earlier this week, specifically focuses on the possibility of foreign subsidies that could influence the competitive landscape within the EU. The Commission, which is tasked with safeguarding market competition within the EU, has expressed concerns that ADNOC's acquisition of Covestro could be significantly affected by the financial support ADNOC is receiving from the UAE. ADVERTISEMENT Among the subsidies under scrutiny are an unlimited guarantee provided by the UAE government and a capital injection into Covestro. The latter involves ADNOC committing substantial funding into the German company, which would significantly increase its capital base and, potentially, its market power. The Commission's investigation could ultimately delay or alter the terms of the deal depending on its findings. ADNOC, which has been aggressively expanding its portfolio and seeking new global opportunities, sees Covestro as an attractive addition to its investments, particularly as the German company holds a strong position in the global chemicals market. The chemicals sector is seen as a crucial area for growth, especially in industries like plastics and polyurethane, which have applications across numerous sectors, including automotive, construction, and electronics. By acquiring Covestro, ADNOC would be able to diversify its business beyond oil and gas, thus making it a more integrated player in the global economy. The issue of foreign subsidies in cross-border mergers and acquisitions has gained increasing attention in recent years, particularly with the growing influence of state-backed companies from non-EU countries. In 2020, the European Commission introduced new tools to assess foreign subsidies in mergers and acquisitions, with the aim of protecting the EU's internal market from potential distortions. The ADNOC-Covestro deal is the latest in a series of transactions under this scrutiny. The Commission's probe is particularly significant as it reflects broader concerns within the EU over the impact of state-backed companies from non-EU nations acquiring strategic European assets. Such concerns have been heightened by geopolitical tensions and the growing influence of countries like China, Russia, and the UAE, all of which have state-owned or state-supported companies engaging in high-profile international mergers and acquisitions. While ADNOC has yet to comment on the investigation, the company's bid to acquire Covestro highlights its ambitions to expand beyond the energy sector. ADNOC's foray into chemicals and materials is seen as part of its strategy to hedge against the global shift towards renewable energy and decarbonisation. The company is looking to solidify its place in the post-oil world by investing in value-added industries, thereby ensuring a diversified revenue stream. On the other hand, the European Commission's actions reflect its determination to maintain a level playing field in the market, ensuring that EU companies are not at a disadvantage when competing with state-backed enterprises from outside the bloc. The EU's foreign subsidies regulation, which came into force in 2020, provides the Commission with the authority to intervene in such cases, even when the potential subsidies do not directly involve EU-based companies. As the investigation unfolds, it remains unclear whether the Commission will clear the deal or impose conditions on it. If the deal goes ahead, it could set a significant precedent for future cross-border mergers involving foreign state-backed companies. Conversely, if the deal is blocked or altered significantly, it may send a strong message about the EU's stance on foreign subsidies and the influence of non-EU governments on its internal market.
