Mr. Stern, OMV and ADNOC have recently announced the creation of Borouge Group International. What makes this transaction so significant?
Alfred Stern: It is indeed a pivotal milestone for OMV and the chemicals industry at large. Together with ADNOC, we are combining Borealis and Borouge to create Borouge Group International. The new entity will acquire Nova Chemicals, further expanding its footprint in North America. The combination is built on highly complementary strengths of these three world-class companies, ultimately creating the world’s fourth-largest polyolefins company, with an enterprise value exceeding USD 60 billion.
When will Borouge Group International start its operations?
Alfred Stern: The transaction is expected to be completed in Q1 2026, subject to regulatory and other customary approvals. The approval by OMV’s Supervisory Board has already been obtained in the meantime.
What role does ADNOC play in this partnership?
Alfred Stern: ADNOC is a long-standing and trusted strategic partner of ours for over 25 years. We draw on our shared vision and proven track record in creating and consecutively scaling a venture like Borouge 1, 2, 3 and soon Borouge 4. Together, we will jointly control the newly established global powerhouse Borouge Group International. This goes hand-in-hand with a strong governance at an international standard and a shared vision for future growth.
What were the key considerations during the negotiations between OMV and ADNOC?
Alfred Stern: It represents several landmark transitions which require mutual agreements on key parameters of the negotiation. Creating an international market leader doesn’t happen overnight. Due thoroughness comes before speed: We took our time to pursue the interests of all our stakeholders in the best possible way. Our aim was to reach a win-win situation for all parties involved, and I am delighted to say that we have achieved this.
How does the transaction fit into OMV’s long-term strategy?
Alfred Stern: The combination of Borealis and Borouge, and their subsequent acquisition of Nova Chemicals, represents a key growth step in our Chemicals segment and is a core pillar of our Strategy 2030. We are accelerating our transformation in Chemicals, including growth of our innovative polyolefins business, geographic diversification, focus on circular economy solution and our journey to become an integrated, sustainable chemicals, fuels, and energy company. It’s a game-changer for us and the industry.
How will OMV change and what are the benefits?
Alfred Stern: Today, with Borealis, we have a highly innovative company that is rooted in Europe. With our equal stakes in Borouge Group International, OMV and ADNOC will leapfrog into a global league of polyolefins producers. One of the strategic focus areas is innovation: With more than 16,500 granted patents, Borouge Group International will have a competitive advantage through its leading technological expertise, and R&D capabilities. Furthermore, the cost-advantaged feedstock position of the new entity will account for approximately 70 percent of its production capacity. This means the entire company will become significantly competitive and diversified across the Americas, Europe, and the Middle East-Asia region.
What does this mean for Austria?
Alfred Stern: It is very good news for the country and for Europe alike. This transaction is set to create unprecedented opportunities at multiple levels. Borouge Group International will be headquartered in Vienna and be tax domiciled in Austria, at the heart of the European continent. The fact that the management and the leadership team of Borouge Group International will be based in Vienna signifies the Austrian capital as a new hub for global chemical leadership.
Where will the new company be stock listed?
Alfred Stern: Borouge Group International will be listed on the Abu Dhabi Securities Exchange (ADX), with a planned secondary listing on Austria’s ATX thereafter. The new company will be significantly larger than OMV, and we will own a stake of 46.94 percent—the same as our partner ADNOC. There is currently no company of this scale in the ATX. This also shows the great potential of our transaction for Austria.
Can you guarantee comparable dividend payments by OMV to your shareholders, including the Austrian government, as before?
Alfred Stern: For 2024, OMV will propose a dividend of EUR 4.75 per share. Based on the December stock price, this corresponds to a dividend yield of over 12 percent. The dividend for 2025 will be paid according to our existing dividend policy. Even beyond that, we will continue to offer a competitive dividend. This principle is underlined by the net floor dividend to OMV from Borouge Group International that is expected to be around USD 1 billion.
Last question, Mr. Stern: What comes next for OMV?
Alfred Stern: I am filled with great optimism. The momentum is on our side. At OMV, we strongly believe that people make it happen. Together, we will further deliver on our Strategy 2030 and our promise of reinventing essentials for sustainable living.