It seems unlikely that the merger between Borealis and Borouge will materialize, as tensions continue to rise between OMV and Adnoc. The “Edelweiss” project, which was set to be finalized in September 2023, initially appeared promising from an industrial perspective. However, negotiations with Adnoc have become increasingly aggressive and hostile, causing tension among Austrian stakeholders.
Concerns have arisen regarding key aspects of the deal, including valuation of Borealis and Borouge and Austria’s protection from share dilution in the joint chemical company. OMV has sought to maintain control options, but Adnoc’s stance has posed obstacles. The negotiations have been further complicated by geopolitics, such as the EU Parliament vote against removing the United Arab Emirates from the FATF Gray List.
As pressure mounts on Adnoc to secure a successful deal, speculation surrounds the negotiations surrounding Borealis’ valuation and Adnoc’s tough negotiation tactics. Despite uncertainties and challenges, OMV remains committed to the negotiations in the best interests of shareholders and employees.
The timeline for finalizing the merger is a priority for the government, but it remains uncertain whether it will happen before national council elections. Stakeholders brace for potential shifts in the outcome of the merger as negotiations continue between OMV and Adnoc, acknowledging their historical partnerships between companies despite growing tensions.
In summary, while there are uncertainties about whether Borealis-Borouge merger will occur due to ongoing conflicts between OMV and Adnoc over valuation of Borealis and Austria’s protection from share dilution in joint chemical company. Pressure mounts on Adnoc to secure a successful deal given past failed takeover attempts amidst geopolitical complications such as EU parliament vote against removing UAE from FATF Gray List.