ADNOC is to acquire OCI Global’s entire majority shareholding in Fertiglobe plc, the largest nitrogen fertiliser producer in the Middle East and North Africa and producer of sustainable ammonia
ADNOC will purchase OCI’s stake for US$3.62bn, with the transaction expected to complete in 2024. The agreement will make ADNOC the majority shareholder in Fertiglobe, increasing its shareholding to 86.2%.
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, and has production facilities in Egypt, Algeria and the UAE for sustainable ammonia.
The two companies have also signed a Memorandum of Understanding (“MoU”) to explore potential cooperation on future growth opportunities for ammonia imports into Europe and product distribution.
The transaction supports ADNOC’s ambitious chemicals strategy and its 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 enables Fertiglobe to accelerate the pursuit of new market and product opportunities, and expand its focus on clean ammonia as an emerging fuel and hydrogen carrier. The transaction is expected to close in 2024, subject to the completion of all necessary legal and regulatory conditions.
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 maximising 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.”
