Austria's OMV said on Friday said it will enter negotiations with Abu Dhabi National Oil Co (ADNOC) to potentially create a chemicals giant via the combination of two entities in which both companies own stakes.

The deal, if realised, would include a merger of petrochemicals group Borealis -- which is owned by OMV and ADNOC in a 75:25 split -- and Borouge, which is 54:36 owned by ADNOC and Borealis.

OMV said such a tie-up would result in both Borealis and Borouge becoming "equal partners under a jointly controlled, listed platform for potential growth acquisitions to create a global polyolefin company".

A potential tie-up between the both petrochemicals companies, which was first reported last week, would create a global heavyweight with combined annual sales of more than $20 billion.

OMV said any transaction depended on a number of criteria, including the valuation of both businesses as well as the approval of the Austrian group's management and supervisory boards and antitrust authorities.

($1 = 0.8912 euros)

(Reporting by Andrey Sychev and Christoph Steitz; Editing by Louise Heavens and Frances Kerry)