ADNOC’s $30 billion chemicals deal with Austria’s OMV stalls, FT reports

By Thomson Reuters Feb 22, 2024 | 11:50 PM

(Reuters) – Talks relating to a planned $30 billion merger between the chemicals arms of Abu Dhabi National Oil Company (ADNOC) and Austrian oil and gas company OMV have stalled over recent weeks, the Financial Times reported on Friday.

The negotiations have paused to allow the parties to navigate a series of disagreements, which includes the name of the merged unit in the final deal announcement, the report said, citing people familiar with the matter.

It is still possible that talks will resume and a deal will eventually be reached, FT said.

“We are in ongoing and open-ended negotiations and cannot comment further,” OMV said in a statement to the Financial Times.

OMV and ADNOC did not immediately respond to a Reuters request for comment.

Reuters previously reported that there are a number of points of conflict between the firms, including a provision for job guarantees in Austria, a requirement for a Vienna listing and an Austrian chairman of the new company.

Last July, OMV entered into talks to merge petrochemicals group Borealis – which is owned by OMV and ADNOC in a 75:25 split – and Borouge, which is listed in Abu Dhabi and 54:36 owned by ADNOC and Borealis.

(Reporting by Gursimran Kaur in Bengaluru; Editing by Savio D’Souza and Sonia Cheema)