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Austria OMV (OTCPK:OMVJF) (OTCPK:OMVKY) and Abu Dhabi National Oil Co. are putting the finishing touches on a deal to create a petrochemical firm worth more than €30B, which could be finalized as soon as this month, Bloomberg reported Monday.
The two sides are said to be ready to meet to discuss details of the planned merger of Abu Dhabi-listed Borouge with Borealis AG, with the intent of reaching an agreement before year-end on the proposal, which could see OMV (OTCPK:OMVJF) (OTCPK:OMVKY) and Adnoc each hold 47% of the combined entity.
The latest proposal envisions OMV (OTCPK:OMVJF) (OTCPK:OMVKY) injecting ~€1.7B of cash into the joint company to ensure its stake is equal to Adnoc’s, while the parties are still working out the combined firm’s listing venue and headquarters location, according to the report.
OMV (OTCPK:OMVJF) (OTCPK:OMVKY) CEO Alfred Stern said recently he sees “compelling” logic to a deal, and he wants to create a combined listed company with “equal shares and equal rights.”
Adnoc CEO Sultan Al Jaber is said to be seeking deals to better compete with Saudi Aramco’s Sabic chemical unit, and the company also is separately working on an acquisition of German chemicals group Covestro.
Image and article originally from seekingalpha.com. Read the original article here.