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A deal to create a $32 billion global chemicals giant by state-owned companies in UAE and the Austria will be delayed by upcoming Austrian elections, according to a Bloomberg report.
Talks between Abu Dhabi-listed ADNOC and Vienna-listed OMV AG have been ongoing for several months, with discussions continuing over valuations, the report said citing people familiar with the matter.
Bloomberg said the deal could now be delayed until after Austria’s elections, which are expected to take place in September and October, due to Austrian sensitivities around its largest industrial employer.
The delays have been caused by issues including requirement by ADNOC for a €1.7 billion (AED 6.67 billion) cash payment to main an equal stake in the merged business, the Bloomberg sources said.
Another factor is the value of sustainable polyolefins company Borealis, which is not listed, owned 75% by OMV and 25% by ADNOC, and which is seen to have declined in value due to high costs of energy which have hurt European chemical companies.
UAE state-news agency WAM reported on Thursday that Dr Sultan bin Ahmed Al Jaber, the UAE’s Minister of Industry and Advanced Technology, who is also MD and CEO of ADNOC, met with top Austrian politicians including Chancellor Karl Nehammer, Foreign Affairs Minister Alexander Schallenberg and Minster of Finance Dr Magnus Brunner.
But Bloomberg cited sources who said no substantial talks over the merger took place during the meeting.
(Writing by Imogen Lillywhite; editing by Daniel Luiz)
