Abu Dhabi’s Adnoc and Austria’s OMV reached an agreement to combine their petrochemical businesses and subsequently acquire Canada’s Nova Chemicals to form a giant with a combined value of about $60 billion.

The United Arab Emirates’ and Austria’s top oil companies agreed on terms to create a chemicals giant worth more than $60 billion, enhancing their positions in an industry they expect will continue to grow in the energy transition.

The $60 billion company formed by the merger of Adnoc and OMV AG’s chemical units is targeting a more than 50% boost in profits, and remains open for further deals or building new plants.

Austria's OMV ( OTCPK:OMVJF) and Abu Dhabi National Oil Company agreed to merge their polyolefin businesses to create a $60B chemicals joint venture, Reuters reported Monday.

Nova is one of North America’s largest polyethylene (PE) resin makers, and is wholly owned by Mubadala Investment Co., a state-owned investment group based in Abu Dhabi. Nova has resin production facilities in Joffre, Alta.; Sarnia, Ont.; Geismar, La.; and a new film recycling plant in Connersville, Ind.

Top Emirati and Austrian oil companies, Abu Dhabi National Oil Company (ADNOC) and OMV will merge their polyolefin businesses to create a chemicals

OMV and ADNOC agreed on the key terms of the potential consolidation of their polyolefin businesses and the subsequent acquisition of NOVA Chemicals under the new JV.

OMV and ADNOC have partnered to combine their polyolefins businesses, creating a $60 billion global leader in the sector, including the acquisition of Nova Chemicals.