Abu Dhabi’s state-owned energy company Adnoc has agreed to terms of a binding agreement with Austria’s OMV to merge their polyolefins business and create a $60 billion global champion.

Under the framework agreement, the two companies will form a joint venture company, Borouge Group International (BGI), combining Adnoc’s Borouge with OMV’s Borealis unit, Adnoc said on Tuesday.

Adnoc has also signed a share purchase agreement with Nova Chemicals, a unit of Mubadala Investment Company, for the full acquisition of Nova.

On completion of the Borouge and Borealis merger, the new entity will take ownership of Nova for $13.4 billion including debt, which will expand its footprint in North America.

“These transformative transactions mark a pivotal milestone in Adnoc’s global chemicals strategy as we deliver on our international growth mandate,” Dr Sultan Al Jaber, Adnoc managing director and group chief executive, said.

“Building on our 25-year strategic partnership with OMV, we will create a new industry powerhouse, with a portfolio of premium products, cutting-edge technologies and worldwide market access.”

The deal to combine Borouge and Borealis and subsequent acquisition of Nova Chemicals, further “solidifies Abu Dhabi’s status as a leader in the chemicals sector”, he said.