ADNOC acquires OCI’s stake in Fertiglobe

Abu Dhabi National Oil Company (ADNOC) has agreed to buy European chemical producer OCI's entire stake in Fertiglobe for AED 13.28 billion ($3.62 billion).

The transaction is expected to close in 2024, subject to the completion of all necessary legal and regulatory conditions, including anti-trust approvals.

Fertiglobe is listed on the Abu Dhabi Securities Exchange (ADX) and is the world’s largest seaborne exporter of urea and ammonia combined, the largest nitrogen fertiliser producer in the Middle East and North Africa, and an early mover in sustainable ammonia, with production facilities in Egypt, Algeria and the UAE.

Under the terms of the latest agreement, ADNOC will purchase OCI’s 50 per cent + 1 share stake in Fertiglobe at a price of AED 3.20 per share.

ADNOC and OCI said the agreement also "incorporates an earn-out mechanism for 2024 and 2025, linked to commodity pricing and the free cash flow performance of the Fertiglobe business during the relevant period."

Following the completion of the transaction, ADNOC’s shareholding in Fertiglobe will increase to 86.2 per cent while the free float traded on ADX will remain at 13.8 per cent.

"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," said Khaled Salmeen, Executive Director, Downstream, Marketing and Trading Directorate at ADNOC.

"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," added Nassef Sawiris, Vice Chairman of Fertiglobe and Executive Chairman of OCI Global.