Abu Dhabi National Oil Company (ADNOC) and OCI Global (OCI) have agreed on a sale and purchase deal for ADNOC to acquire OCI’s majority shareholding in Fertiglobe.
Fertiglobe, listed on the Abu Dhabi Securities Exchange (ADX), is the largest seaborne exporter of urea and ammonia worldwide, the primary nitrogen fertiliser producer in the Middle East North Africa region, and an early advocate of sustainable ammonia. It operates production facilities in Egypt, Algeria, and the UAE.
This transaction will make ADNOC the majority shareholder in Fertiglobe, aligning with the company’s chemical strategy and its objective to establish a global growth platform for ammonia. Ammonia is considered a crucial low-carbon fuel and hydrogen carrier anticipated to play a significant role in the transition to cleaner energy sources.
“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 fertilisers,” said Khaled Salmeen, Executive Director, Downstream, Marketing and Trading Directorate at ADNOC. “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.”
For Fertiglobe, this acquisition supports its future growth plans, enabling it to explore new market and product opportunities. It also aids in expanding the focus on clean ammonia as an emerging fuel and hydrogen carrier.
“Today marks a pivotal juncture in Fertiglobe’s journey with ADNOC, which began in 2018,” said Nassef Sawiris, Vice Chairman of Fertiglobe and Executive Chairman of OCI Global. “OCI looks forward to continued collaboration with ADNOC, which will focus on value accretive growth projects outside the Middle East.”
Under the agreement, ADNOC will purchase OCI’s 50% + 1 share stake in Fertiglobe at Dh3.20 per share, totalling Dh13.28 billion ($3.62 billion). An earn-out mechanism for FY2024 and FY2025, tied to commodity pricing and Fertiglobe’s free cash flow performance, is part of the deal. After completion, ADNOC’s ownership in Fertiglobe will rise to 86.2%, while the free float traded on ADX will remain at 13.8%.
The transaction is expected to conclude in 2024, subject to fulfilling all necessary legal and regulatory conditions, including anti-trust approvals.
