Adnoc and OMV will create Borouge Group International through an all-share combination of Borouge and Borealis, the companies said Tuesday. OMV will inject 1.6 billion euros ($1.68 billion) in cash into the business to put its shareholding on par with Adnoc, they said.

Each of Adnoc and OMV will hold a 46.94% stake in the resulting company, with the remaining 6.12% in free float, the companies said. Borouge Group will be headquartered in Vienna and listed on the Abu Dhabi Securities Exchange, they added.

In connection to the deal, Adnoc--formally known as Abu Dhabi National Oil Co.--agreed to buy Nova Chemicals from Mubadala Investment, a United Arab Emirates sovereign-wealth fund. Once the deal to create Borouge Group is completed, the business will acquire Nova Chemicals for $13.4 billion including debt to expand its presence in North America, the companies said.

The enlarged Borouge Group will rank as the fourth largest producer of polyolefins behind Sinopec, China National Petroleum Corp. and ExxonMobil, Adnoc and OMV said.

Write to Adria Calatayud at [email protected]