Who Owns Borouge Company?

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Who Owns Borouge?

Understanding a company's ownership is key to grasping its strategic direction and accountability. Major events like IPOs or restructurings significantly alter this structure. For Borouge, a prominent petrochemical firm, its ownership stems from a strategic joint venture, shaping its global standing and future path.

Founded in 1998 and based in Abu Dhabi, Borouge has emerged as a global leader in polyolefin solutions. Its origins lie in a partnership between the Abu Dhabi National Oil Company (ADNOC) and Borealis, fostering one of the world's largest integrated polyolefin complexes. The company produces polyethylene and polypropylene for various sectors, including infrastructure, energy, and healthcare. As of July 2025, Borouge's market capitalization hovers between $21.3 billion and $21.68 billion USD, underscoring its substantial impact on the global petrochemical industry.

The ownership journey of Borouge, from its initial stakeholders to its current major investors and public shareholders, reveals a dynamic corporate evolution. Recent restructuring initiatives have further influenced its control and strategic outlook, impacting its market presence and product development, such as advancements in Borouge BCG Matrix applications.

Borouge was established in 1998 as a strategic joint venture between the Abu Dhabi National Oil Company (ADNOC) and Borealis. The initial ownership structure reflected this partnership, with ADNOC holding a significant stake and Borealis holding the remainder.

Founding Partnership

Borouge was founded in 1998 as a joint venture between ADNOC and Borealis. This collaboration aimed to leverage the strengths of both entities in the polyolefins market.

Initial Ownership Structure

At its inception, ADNOC held a 60% stake in Abu Dhabi Polymers Co. Ltd. (ADP) and 50% in Borouge Pte. Ltd. Borealis held the remaining 40% of ADP and 50% of Borouge Pte. Ltd.

Strategic Vision

The founding vision was to build and operate a polyolefins complex in Al Ruwais Industrial City, United Arab Emirates. This partnership combined ADNOC's feedstock access with Borealis's technological expertise.

Early Capitalization

Public records do not extensively detail early backers or angel investors. However, the direct joint venture between two major industrial players suggests robust initial capitalization and strategic backing.

Collaborative Control

The initial distribution of control emphasized a collaborative approach. This structure aimed to effectively leverage ADNOC's feedstock advantages and Borealis's polyolefin production technology.

Absence of Early Disputes

There is no publicly available information indicating any initial ownership disputes or buyouts during this early period of the company's history.

The foundational ownership split between ADNOC and Borealis established a clear framework for Borouge's operations and growth. This partnership was designed to harness ADNOC's upstream resources and Borealis's downstream technological capabilities, creating a synergistic relationship for the polyolefins business. The early structure of Borouge ownership was thus centered on these two major entities, laying the groundwork for its future development and market presence.

Borouge's Genesis and Ownership

Borouge's establishment in 1998 marked a significant joint venture between ADNOC and Borealis. This strategic alliance was formed to develop a world-class polyolefins complex.

• Borouge was founded in 1998.
• The primary founders are ADNOC and Borealis.
• ADNOC initially held a 60% stake in ADP and 50% in Borouge Pte. Ltd.
• Borealis initially held a 40% stake in ADP and 50% in Borouge Pte. Ltd.
• The venture aimed to combine ADNOC's feedstock with Borealis's technology.
• The company's early ownership structure was directly tied to these two parent companies.
• Understanding the Revenue Streams & Business Model of Borouge provides further context on its operational framework.

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Borouge's ownership structure has undergone significant transformations, notably with its successful Initial Public Offering (IPO) on the Abu Dhabi Securities Exchange (ADX) in June 2022. This event marked a new era for the company, increasing public participation in its ownership.

The IPO in June 2022 saw Borouge offer 10% of its issued share capital, raising over $2 billion and attracting substantial demand, exceeding $83.4 billion. This event established Borouge's market capitalization at approximately $20.05 billion at the time of listing. As of December 31, 2024, ADNOC retained a majority stake of 54%, with Borealis Middle East Holding GmbH holding 36%, and the remaining 10% in public hands. This ownership breakdown reflects the strategic alignment between ADNOC and Borealis, the company's parent entities.

Future Ownership Landscape

A pivotal development is the proposed combination of Borouge and Borealis, alongside the acquisition of Nova Chemicals, aiming to create a global petrochemical leader. This strategic move is anticipated to form 'Borouge Group International,' a new entity valued at over $60 billion, with an expected completion in Q1 2026.

• ADNOC and OMV (Borealis's parent) will each hold 46.94% in the new entity.
• Joint control and equal governance rights are planned for ADNOC and OMV.
• Approximately 6.12% will be offered as free float to existing Borouge shareholders.
• The combination aims to deliver consistent dividends and significant growth.
• Expected annual synergies are around $500 million run-rate EBITDA.

This strategic realignment is set to create a formidable global petrochemical player, enhancing its market position and operational efficiencies. The proposed transaction, which is subject to legal and regulatory approvals, signifies a major step in the evolution of Borouge's corporate structure and its future growth trajectory. Understanding the Brief History of Borouge provides context for these ongoing strategic shifts and the company's journey to becoming a key player in the global petrochemical industry.

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The Board of Directors for Borouge, as of December 31, 2024, is chaired by H.E. Dr. Sultan Al-Jaber, with Mr. Stefan Doboczky serving as Vice Chairman. The board also includes members such as Mr. Khaled Salmeen, Mr. Abdulaziz Al Hajri, Mr. Khaled Al Zaabi, Mr. Omar Al Nuaimi, Ms. Tasnim Ahnaish, Mr. Phillippe Roodhooft, Mr. Thomas Boesen, and Ms. Daniela Vlad.

The composition of the Board of Directors is closely tied to Borouge's primary ownership structure, with major shareholders likely represented. The company typically operates under a one-share-one-vote principle, standard for entities listed on the ADX. However, the forthcoming establishment of Borouge Group International will introduce a governance framework where ADNOC and OMV will share equal governance and voting rights, reflecting their equal 46.94% shareholdings. This new structure will feature a two-tier board, comprising a Supervisory Board with five representatives each from OMV and ADNOC, and potentially five employee representatives. ADNOC will hold the right to appoint the chairperson of the Supervisory Board, while the Executive Board will be appointed unanimously by both parties based on merit. There is no public information indicating any recent significant shifts in decision-making due to proxy battles or activist investor actions.

Borouge Ownership and Governance

Understanding Borouge's ownership is key to grasping its governance. ADNOC holds a significant majority stake, influencing the company's strategic direction. The upcoming Borouge Group International will formalize equal governance between ADNOC and OMV.

• ADNOC holds a 54% majority stake in Borouge.
• Borealis, OMV's subsidiary, owns 36% of Borouge.
• The new Borouge Group International will have equal governance rights for ADNOC and OMV.
• Supervisory Board will consist of representatives from ADNOC, OMV, and potentially employees.
• ADNOC has the right to appoint the Supervisory Board chairperson.
• The Marketing Strategy of Borouge is likely influenced by its major shareholders.

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Borouge has experienced significant shifts in its ownership structure over the last few years, notably with its Initial Public Offering (IPO) in June 2022. This event broadened its shareholder base beyond its original joint venture partners, marking a new era for the company. The company has demonstrated robust financial health, with a net profit of $1.24 billion reported for the full year 2024, representing a 24% increase compared to the previous year.

The company is committed to rewarding its shareholders, planning to increase its dividend to a minimum of 16.2 fils per share for 2025. This minimum payout is expected to continue until 2030 under the new Borouge Group International structure. Further demonstrating this commitment, a 2.5% share buyback program was approved in April 2025.

Dividend Commitment

Borouge aims to raise its dividend to at least 16.2 fils per share for 2025. This minimum payout is projected to be sustained until 2030.

Shareholder Returns

A 2.5% share buyback program was approved in April 2025. This initiative further underscores the company's focus on enhancing shareholder value.

Strategic Consolidation

The formation of Borouge Group International is a major development. This new entity will combine Borouge, Borealis, and Nova Chemicals, creating a significant global petrochemical leader.

Ownership Structure of New Entity

ADNOC and OMV are set to hold equal stakes of 46.94% in the proposed Borouge Group International. This joint control highlights a strategic alignment between the two entities.

The most significant trend impacting Borouge's ownership is the ongoing establishment of Borouge Group International, a $60 billion global petrochemical leader. This entity is being formed through the integration of Borouge, Borealis, and the acquisition of Nova Chemicals. The transaction is anticipated to be finalized in the first quarter of 2026. Upon completion, ADNOC and OMV, the parent company of Borealis, will each hold an equal 46.94% stake, sharing joint control. This strategic move reflects a broader industry trend towards consolidation, aiming to achieve greater scale, enhanced resilience, and accelerated innovation. The combined entity is projected to possess a production capacity of 13.6 million tonnes, nearly tripling Borouge's current output. The Borouge 4 expansion project, currently in development by ADNOC and Borealis, is slated to be transferred to Borouge Group International at cost, further bolstering the new entity's production capabilities and overall shareholder value. Understanding the Mission, Vision & Core Values of Borouge provides context for these strategic shifts.

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