ADNOC today announced the completion of its acquisition of OCI Global’s 50 percent + 1 shareholding in Fertiglobe plc, increasing its share in the company to 86.2 percent, with 13.8 percent remaining in free float on the Abu Dhabi Securities Exchange (ADX).
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, exporting to 53 countries with some 10 percent collective market share of global trade in these products.
The acquisition represents another significant milestone in ADNOC’s ambitious chemicals growth strategy, the expansion of its low-carbon fuels business, and supports its goal to become a top five global chemicals player.
Platform for growth
Fertiglobe will become the platform for ADNOC’s growth in fertiliser and low-carbon ammonia. To deliver value accretive and disciplined growth for Fertiglobe, ADNOC will transfer its stakes in existing and future low-carbon ammonia projects to Fertiglobe at cost and when ready for startup, creating a world-class growth platform for low-carbon ammonia as a key energy transition fuel. This includes its two lower carbon ammonia projects in Abu Dhabi and other projects in its global portfolio.
Read: ADNOC, ENPPI partner to boost local industrial sector, create jobs for UAE nationals
On a consolidated basis, the two projects in Abu Dhabi would add some 2 mtpa, more than doubling Fertiglobe’s current merchant ammonia capacity of 1.6 mtpa and increasing its total sellable capacity to 8.6 mtpa of net ammonia and urea combined, in addition to other announced global projects.
Equitable energy transition
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and managing director and group CEO of the Abu Dhabi National Oil Company (ADNOC), said: “ADNOC’s majority shareholding in Fertiglobe marks another milestone in the delivery of our ambitious international chemicals growth strategy and goal to become a top five chemicals player. Fertiglobe is a world-class company, and it will be the vehicle through which ADNOC advances its low-carbon ammonia business, supporting our efforts to enable a just, orderly, and equitable global energy transition. We see significant growth opportunities for Fertiglobe and I am confident that under the continued and dedicated leadership of Ahmed El-Hoshy, the company will deliver greater value for its shareholders.”
Fertiglobe’s current management team will stay in place, reflecting ADNOC’s confidence in their expertise and leadership, including Ahmed El-Hoshy in his continued role as Fertiglobe’s CEO. Ahmed El-Hoshy spent 15 years growing OCI’s US and European business in ammonia and methanol via greenfields, brownfields and acquisitions generating significant value for shareholders by leading recent divestments.
Ahmed El-Hoshy said: “The successful completion of the ADNOC transaction is a historic milestone for Fertiglobe, reinforcing the positive long-term outlook for our business and unique market position, while elevating our future ambitions. Positioned as the vehicle of ADNOC’s plans to establish a global growth platform for ammonia, Fertiglobe is poised to meet the increasing global demand for low-carbon solutions and bring us closer to a more sustainable future. We look forward to joining ADNOC’s integrated ecosystem and unlocking the full potential of our product portfolio while maximising shareholder value and maintaining our commitment to balancing disciplined growth with dividend distributions.”
For more energy news, click here.
