OMV Stock: Radical Restructuring
OMV is slashing costs and cutting jobs to fund its merger with ADNOC’s polyolefins division. The deal, set to create a $60 billion chemical giant, will see the new company, Borouge Group International (BGI), launch in early 2026. Meanwhile, the firm’s cost-cutting drive includes €400 million in savings and the loss of 2,000 positions worldwide.
The merger between OMV’s polyolefins unit and ADNOC will form Borouge Group International (BGI), a company valued at over $60 billion. Both firms will hold a 46.94% stake in the new entity, which is expected to finalise by the first quarter of 2026. Analysts project BGI will generate $500 million in annual synergies once fully operational.
To finance the deal, OMV has launched a restructuring programme called *Revo*. This includes cutting €400 million in expenses by the end of 2027 and reducing its global workforce by around 2,000 employees—nearly 9% of its total staff. Hundreds of these job losses will hit Austria, particularly in administration and corporate roles. A radical reshuffle of senior management is also planned, though the exact number of new leadership positions remains unclear. The changes come as CEO Alfred Stern’s contract nears its end next year, leaving his future with the company uncertain. Beyond the merger, OMV’s Neptune Deep gas project in the Black Sea remains on track for a 2027 production start. The company’s stock currently trades at €46.62, slightly above its 200-day moving average of €46.34.
The merger with ADNOC will create one of the world’s largest chemical firms, with BGI set to operate from 2026. OMV’s cost-cutting measures, including job reductions and expense cuts, are designed to support the deal’s financing. The company’s stock performance and ongoing projects, such as Neptune Deep, will be closely watched as the transition unfolds.
Read also:
- India's Agriculture Minister Reviews Sector Progress Amid Heavy Rains, Crop Areas Up
- Over 1.7M in Baden-Württemberg at Poverty Risk, Emmendingen's Housing Crisis Urgent
- Life Expectancy Soars, But Youth Suicide and Substance Abuse Pose Concern
- Cyprus, Kuwait Strengthen Strategic Partnership with Upcoming Ministerial Meeting
