Abu Dhabi National Oil Company (ADNOC) has closed the acquisition of a nearly 25% stake in Austrian energy company OMV from Mubadala Investment Company (Mubadala).

The deal, of undisclosed value, has increased the oil giant’s shareholdings in European petrochemicals maker Borealis AG and petrochemicals company Borouge, according to a statement on Thursday.

The acquisition is part of ADNOC’s efforts to accelerate its international chemicals growth strategy.

Following the transaction, ADNOC now owns 24.9% of OMV, while Austrian independent holding firm Österreichische Beteiligungs AG (ÖBAG) holds 31.5%, with the remaining share capital in free float.

“This transaction marks the next transformative step as we accelerate our ambitious chemicals growth strategy,” said Khaled Salmeen, Executive Director, Downstream Industry, Marketing & Trading at ADNOC.

ADNOC also said it will continue its negotiations with OMV about the potential creation of a new combined petrochemicals holding entity through the proposed merger of their shareholdings in Borouge and Borealis.

OMV owns the majority (75%) stake in Borealis, while ADNOC holds the remaining 25%.

In July 2023, the two firms started talks regarding the merger that would establish a new chemicals entity with more than $30 billion in value.

(Writing by Cleofe Maceda; editing by Seban Scaria)