Abu Dhabi National Oil Co (ADNOC) and Austria's OMV are aiming to agree final terms of a tie-up that would create a chemicals group with more than $20 billion (€18.4 billion), Reuters reported.
OMV said in July last year it had entered into talks to merge petrochemicals group Borealis - which is owned by OMV and ADNOC in a 75/25 split - and Borouge, which is listed in Abu Dhabi and 54/36 owned by ADNOC and Borealis.
An OMV spokesperson said the two sides were in "ongoing negotiations”.
In October, the Austrian company's CEO Alfred Stern said the company would be listed on the stock exchange.
Previously OMV said both Borealis and Borouge would become "equal partners under a jointly controlled, listed platform for potential growth acquisitions to create a global polyolefin company".
OMV is partly state-owned and has Abu Dhabi's Mubadala as its second largest shareholder. Mubadala's shares in OMV will be taken over by ADNOC, as previously announced.
Separately, state-owned ADNOC said on it would allocate $23 billion (€21 billion), for decarbonisation and lower-carbon projects, up from a previous $15 billion (€13.8 billion) target.
ADNOC and OMV in talks over petrochem tie-up
