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Abu Dhabi, OMV in talks to form chemicals giant – sources

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July 4 (Reuters) – Abu Dhabi is in discussions with Austria’s OMV (OMVV.VI) A merger of two major chemicals and plastics companies with interests in the deal would create a group worth tens of billions of dollars, a person familiar with the matter told Reuters on Tuesday.

State-run Abu Dhabi National Oil Company (ADNOC) owns 25 percent of Austrian oil and gas company OMV, which holds a stake in Borealis (BESGR.UL), which in turn owns a stake in Borouge (Borouge.AD).

The two sides are discussing a possible valuation of around $10 billion for Borealis, including its Borouge stake, Bloomberg reported earlier, adding that the combined entity’s overall valuation could eventually exceed $30 billion.

The report added that the owners are discussing the potential valuation and ownership structure of the combined entity and could agree on a general framework for formal merger talks in the coming weeks.

OMV chief executive told Reuters last month The company does not plan to sell a majority stake in its petrochemical subsidiary Borealis.

ADNOC and OMV declined to comment for this story. Borealis did not immediately respond to an emailed request for comment.

Reporting by Shivani Tanna in Bengaluru and Alexandra Schwarz-Goerlich in Vienna; Editing by David Goodman and David Holmes

Our standards: Thomson Reuters Trust Principles.

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