OCI and ADNOC Complete Fertilizer Merger
Dutch fertilizer and industrial chemicals group OCI and Abu Dhabi National Oil Company (ADNOC) have completed the merger of their fertilizer assets, which was first announced in June.
The “landmark” transaction has created Fertiglobe, headquartered in Abu Dhabi, United Arab Emirates (UAE), and the largest export-focused nitrogen fertilizer platform in the world as well as the largest producer in Middle East and North Africa (MENA).
Fertiglobe (owned 58% by OCI and 42% by ADNOC) has a production capacity of 5 million t/y of urea and 1.5 million t/y of merchant ammonia along with annual revenues of more than $1.7 billion based on 2018 pro forma figures.
Now that the transaction has closed, the joint venture will focus on integrating the two businesses, which the partners said will create “significant value through the unlocking of commercial and technical synergies”.
“Working alongside our partner OCI, we look forward to significantly growing our newly combined fertilizer businesses, accessing new markets and bringing significant benefits to all our customers,” said Sultan Ahmed Al Jaber, CEO of ADNOC and UAE Minister of State. He added that the transaction’s closure is another example of ADNOC’s progress in delivering on its 2030 growth strategy and specifically its ambitions to expand its downstream portfolio.
Fertiglobe will include Egypt Fertilizer Company, a 60% stake in Egypt Basic Industries Corp. plus a 51% share in Alergia’s Sofert – all part of OCI – and Fertil, formerly ADNOC Fertilizers.