Abu Dhabi's ADNOC plans to transfer 24.9% stake in OMV to XRG unit
ADNOC last year bought a 24.9% stake in OMV from Abu Dhabi sovereign wealth fund Mubadala, without disclosing the financial terms.
Earlier this year, ADNOC and OMV agreed to merge their polyolefin businesses to create a chemicals company with a $60 billion enterprise value.
The merged entity, Borouge Group International (BGI), is set to be the world's fourth-largest polyolefins firm by production capacity, behind China's Sinopec and CNPC and U.S.-based ExxonMobil (XOM.N), opens new tab, ADNOC Downstream CEO Khaled Salmeen told Reuters in March.
BGI will combine two joint ventures - Borealis, 75% owned by OMV and 25% by ADNOC, and Borouge (BOROUGE.AD), opens new tab, 54% owned by ADNOC and 36% by Borealis, the company announced in March.
In its statement on Wednesday, ADNOC said it is progressing with preparation for the proposed establishment of BGI.
ADNOC's proposed 46.94% shareholding in BGI is expected to be held by XRG upon completion of the transaction, subject to regulatory approvals, the statement said.
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