The completion of the strategic transaction between OMV and XRG has resulted in the formation of Borouge International, positioning the company as the world’s fourth-largest polyolefins producer and a major new force in global materials supply.
The new entity has been created through the combination of Borouge and Borealis, alongside the acquisition of NOVA Chemicals for $13.4 billion, establishing a global platform spanning Europe, the Middle East, North America and Asia.
With access to a total polyolefins production capacity of 13.6 million tonnes per annum, the company will play a significant role in supplying polyethylene (PE) and polypropylene (PP), which together account for a substantial share of global plastics consumption and form the backbone of flexible and rigid packaging applications.
From a packaging industry perspective, this consolidation strengthens supply chain resilience at a time of increasing volatility in raw material pricing and logistics. The integration of upstream feedstock advantage with downstream innovation capabilities is expected to support converters and brand owners with more stable material availability, improved cost efficiencies, and access to advanced polymer grades tailored for performance-driven and sustainable packaging formats.
Borouge International is expected to deliver more than $500 million in annual EBITDA synergies, with approximately 75% projected within the first three years. The company’s margin profile and global footprint are expected to enhance its ability to serve high-growth packaging markets while supporting long-term value creation.
Headquartered in Austria with a regional base in the UAE, the company will operate as a 50:50 joint venture between OMV and XRG. It is also expected to pursue a listing on the Abu Dhabi Securities Exchange, with a proposed free float of 6.12%, subject to regulatory approvals.
In parallel, Borouge International has outlined a minimum dividend policy of 16.2 fils per share, reflecting a planned uplift compared to previous Borouge distributions, while reinforcing its commitment to shareholder returns.
The formation of Borouge International marks a significant structural shift in the global polyolefins landscape, with direct implications for packaging value chains worldwide, particularly in regions such as the Middle East and Africa where demand for advanced, sustainable packaging materials continues to grow.