Abu Dhabi National Oil Company P.J.S.C. (“ADNOC”) and OCI Global (“OCI”), have entered into a sale and purchase agreement for the acquisition by ADNOC of OCI’s entire majority shareholding in Fertiglobe plc (“Fertiglobe”). Fertiglobe is a seaborne exporter of urea and ammonia combined, and one of the largest nitrogen fertilizer producer in the Middle East and North Africa, and an early mover in sustainable ammonia, with production facilities in Egypt, Algeria and the UAE.
The transaction, which will see ADNOC become majority shareholder in Fertiglobe, supports the company’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.
For Fertiglobe, the transaction supports the company’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. The press release stated that following the completion of the transaction, ADNOC’s shareholding in Fertiglobe will increase to 86.2% while the free float traded on ADX will remain at 13.8%.
Khaled Salmeen, Executive Director, Downstream, Marketing and 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. The 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.”
Building on ADNOC and OCI’s strong and long-standing strategic partnership, the two companies have also signed an agreement to explore potential cooperation on future growth opportunities for ammonia imports into Europe and product distribution. Both partners have deep knowledge and understanding of the role that ammonia has to play in global decarbonization and energy transition, and the MoU provides a robust framework to leverage each Company’s strengths in pursuing opportunities in the energy transition and decarbonization areas.
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”.
