Abu Dhabi National Oil Co (ADNOC) and Austria’s OMV AG are moving closer to establishing a $32 billion petrochemical company, according to a Bloomberg report.

The two entities are already "putting the final touches" on an agreement to merge Abu Dhabi-listed Borouge Plc with Borealis AG.

ADNOC and OMV, an international energy company, could each hold 47% of the merged entity, leaving 6% as free float. The two parties are reportedly looking to come up with a deal before the end of the year.

Borealis AG is a partnership between the two companies, with OMV owning a 75% stake and ADNOC holding 25% of the firm. In Borouge, the oil giant owns a majority 54% stake, while Borealis holds a 36% stake.

According to Bloomberg, the new deal could value Borealis at above 10 billion euros ($10.7 billion), while Borouge may be valued at nearly 20 billion euros.

OMV could potentially invest around 1.7 billion euros into the merged entity so that its share is equal to ADNOC’s.

(Writing by Cleofe Maceda; editing by Seban Scaria)