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ADNOC's $30 billion chemicals tie-up with Austria's OMV stalls, FT reports

Published 02/23/2024, 12:50 AM
Updated 02/23/2024, 03:27 AM
© Reuters. FILE PHOTO: A worker injects a car with fuel at an ADNOC petrol station in Abu Dhabi, United Arab Emirates July 10, 2017. REUTERS/Stringer/File Photo

(Reuters) -Talks related to a planned $30 billion merger between the chemicals arms of Abu Dhabi National Oil Company (ADNOC) and Austrian oil and gas company OMV have stalled in recent weeks, the Financial Times reported on Friday.

The parties halted negotiations to navigate a series of disagreements, which include the name of the merged unit, the report said, citing people familiar with the matter.

It is still possible that talks will resume and a deal will eventually be reached, FT said.

"We are in ongoing and open-ended negotiations and cannot comment further," OMV said in an emailed statement to Reuters.

ADNOC declined to comment.

© Reuters. FILE PHOTO: A worker injects a car with fuel at an ADNOC petrol station in Abu Dhabi, United Arab Emirates July 10, 2017. REUTERS/Stringer/File Photo

Reuters previously reported that there are a number of points of conflict between the firms, including a provision for job guarantees in Austria, a requirement for a Vienna listing, and an Austrian chairman of the new company.

Last July, OMV entered into talks to merge petrochemicals group Borealis - owned by OMV and ADNOC in a 75:25 split - and Abu Dhabi-listed Borouge, which is 54:36 owned by ADNOC and Borealis.

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