The deal, if realised, would include a merger of petrochemicals group Borealis (BESGR.UL) - which is owned by OMV and ADNOC in a 75:25 split - and Borouge (BOROUGE.AD), which is 54:36 owned by ADNOC and Borealis.
Under the plan, OMV said both Borealis and Borouge would become "equal partners under a jointly controlled, listed platform for potential growth acquisitions to create a global polyolefin company".
The potential tie-up, first reported last week, would create a global heavyweight with combined annual sales of more than $20 billion.
OMV Chief Executive Alfred Stern said the transaction had "strong and compelling industrial logic".
"Combining the two complementary businesses would bring together Borealis' technological expertise, and specialty and sustainable polyolefins solutions, with Borouge's advantageous cost position and access to attractive markets," he said.
OMV said any transaction depended on several criteria, including the valuation of both businesses as well as the approval of the Austrian group's management and supervisory boards and antitrust authorities.
The two parties are discussing a possible Borealis valuation of about $10 billion, including its Borouge stake, Bloomberg reported earlier this month, adding that the overall valuation of the combined entity could ultimately exceed $30 billion.
Goldman Sachs analysts have said a combination of the two business would allow the new entity to grow in scale.
"We also note that Borouge's technological/innovation capabilities are largely enabled by Borealis's proprietary technology, while the latter also distributes Borouge's volumes sold in Europe and the United States," the analysts said.
($1 = 0.8912 euros)
