New chemicals giant may be formed

Abu Dhabi is discussing with Austria's OMV the combination of two major chemicals and plastics companies in which they have interests, a source told Reuters.

State-run Abu Dhabi National Oil Co (ADNOC) owns 25% of Austrian oil and gas company OMV, which has a stake in Borealis, and which in turn has a stake in Borouge.

The two parties are discussing a possible Borealis valuation of about $10 billion, including its Borouge stake, Bloomberg earlier reported, adding that the overall valuation of the combined entity could ultimately exceed $30 billion.

The owners are discussing the potential valuation and ownership structure of a combined entity and may reach the broad outlines for formal merger negotiations in the coming weeks, the report added.