Abu Dhabi National Oil Co (ADNOC) is close to signing a deal with Austrian energy company OMV to merge their petrochemical businesses, reported Reuters, citing two people with knowledge of the talks.

The two companies commenced talks in July 2023 to merge Abu Dhabi Securities Exchange-listed Borouge and Vienna-based Borealis to create a new chemicals entity that could have a value of more than $30bn.

OMV owns a 75% stake in Borealis, which is engaged in providing polyolefins solutions and recycling. ADNOC owns the remaining 25% stake.

Petrochemical company Borouge is a JV between ADNOC (54%) and Borealis (36%).

Earlier, OMV said Borealis and Borouge are expected to become "equal partners under a jointly controlled, listed platform for potential growth acquisitions to create a global polyolefin company".

The new company is expected to have combined annual sales of more than $20bn.

OMV chairman of the board and CEO Alfred Stern earlier said: “This potential transaction would have a strong and compelling industrial logic.

“Combining the two complementary businesses would bring together Borealis’ technological expertise, and speciality and sustainable polyolefins solutions, with Borouge’s advantageous cost position and access to attractive markets, that would create a new global polyolefin powerhouse with significant organic and inorganic growth potential.”

Last month, Bloomberg News reported that ADNOC was looking to acquire European energy company Wintershall Dea to expand international operations.

A potential deal could value Wintershall Dea at more than €10bn ($11bn).

German chemical company BASF, which holds a 73% stake in Wintershall Dea, has hired undisclosed advisers to explore the potential sale of the oil and gas company.