ADNOC to Acquire OCI’s Stake in Fertiglobe for $3.6 Billion

18.12.2023 - Abu Dhabi National Oil Company (ADNOC) has agreed to acquire OCI Global's entire majority stake in fertilizer producer Fertiglobe for $3.62 billion. Fertiglobe is a joint venture established in October 2019 between the state-owned oil company of the United Arab Emirates (UAE) and the Dutch fertilizer and industrial chemicals group.

Following the completion of the transaction, ADNOC’s shareholding in Fertiglobe will increase to 86.2% while the free float traded on the Abu Dhabi Securities Exchange (ADX) will remain at 13.8%.

The transaction, ADNOC commented in a statement, supports its ambitious chemicals strategy and plans to establish a global growth platform for ammonia, a key lower carbon fuel and hydrogen carrier that is expected to play an important role in the energy transition. It also backs Fertiglobe’s future growth plans, enabling it to accelerate the pursuit of new market and product opportunities, and expand its focus on clean ammonia as an emerging fuel and hydrogen carrier.

Khaled Salmeen, executive director, Downstream, Marketing & Trading Directorate at ADNOC, said: “Working in close partnership with OCI since 2018, we have successfully listed and grown Fertiglobe into the world’s largest seaborne exporter of ammonia and urea fertilizers. Today’s agreement reinforces ADNOC’s long-term commitment to Fertiglobe and our continued focus on delivering growth and maximizing value for the company’s shareholders. This important transaction supports ADNOC’s ambitious chemicals growth strategy and accelerates our plan to establish a global growth platform for ammonia and clean ammonia.”

ADNOC and OCI have also signed a Memorandum of Understanding (MoU) to explore potential cooperation on future growth opportunities for ammonia imports into Europe and product distribution.

Nassef Sawiris, vice chairman of Fertiglobe and executive chairman of OCI Global, commented: “Today marks a pivotal juncture in Fertiglobe’s journey with ADNOC, which began in 2018. Within the ADNOC Group, I am confident that Fertiglobe has found its optimal long-term home, and that with ADNOC’s continued support and guidance, significant value creation and exciting growth opportunities lie ahead. OCI looks forward to continued collaboration with ADNOC which will focus on value accretive growth projects outside the Middle East.”

The transaction is expected to close in 2024, subject to the completion of regulatory conditions, including anti-trust approvals.