Abu Dhabi National Oil Company (ADNOC) and OCI Global have entered into a sale and purchase agreement for ADNOC to acquire OCI’s entire majority shareholding in Fertiglobe, the world’s largest seaborne exporter of urea and ammonia.
Headquartered in Abu Dhabi, Fertiglobe was formed as a strategic partnership between OCI and ADNOC in September 2019, with a subsequent listing on the Abu Dhabi Securities Exchange (ADX) in 2021.
The agreement will see ADNOC purchase OCI’s 50% + 1 share stake in Fertiglobe for a price of AED 3.20 per share, representing a total purchase price of AED 13.28 billion ($3.62 billion).
Following the completion of the transaction, ADNOC’s shareholding in Fertiglobe will increase to 86.2% while the free float traded on the ADX will remain at 13.8%. The transaction is expected to close in 2024, subject to the completion of all necessary legal and regulatory conditions, including anti-trust approvals.
This acquisition is expected to support ADNOC’s 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, this 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.
In addition to the sale and purchase agreement, ADNOC and OCI have signed a memorandum of understanding (MoU) to explore potential cooperation on future growth opportunities for ammonia imports into Europe and product distribution.
The MoU aims to provide a robust framework to leverage each company’s strengths in pursuing opportunities in the energy transition and decarbonization areas.
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.”
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.”