Abu Dhabi National Oil Company (ADNOC) and Austria’s OMV plan to merge their polyolefin businesses — and acquire another one — to create a $60 billion plastics firm.

In a statement on Tuesday, ADNOC and OMV said they had agreed on terms to merge their Borouge and Borealis subsidiaries and acquire American polyethylene producer Nova Chemicals Corporation. Nova, an indirectly wholly owned company of UAE sovereign wealth fund Mubadala Investment Company, has a 2.6 million metric tons of polyethylene capacity and 4.2 million metric tons of ethylene capacity. The acquisition will cost $13.4 billion, including debt.

Polyolefin is a type of synthetic plastic made from polymerizing ethylene and polyethylene, hydrocarbons extracted from oil and natural gas. Polyolefins have multiple uses, including to make packaging, but they are also used to make pipes and fuel tanks for vehicles. The plastics are also used in construction for building insulation.

Following the takeover, the newly formed firm, Borouge Group International (BGI), will become the world’s fourth-largest polyolefin company, with a combined polyolefins nameplate production capacity of approximately 13.6 million tons per annum, including current organic polyolefin growth projects, ADNOC and OMV said.