Adnoc forms strategic partnership with OCI to set-up $1.7bn JV
Fertiglobe will combine Adnoc’s fertiliser business with OCI’s Middle East nitrogen fertiliser platform
Abu Dhabi National Oil Company (Adnoc) has signed an agreement with Netherlands-based chemical firm OCI NV to combine Adnoc’s fertiliser business with the latter’s nitrogen fertiliser platform in the Middle East and North Africa region.
The JV is expected to have over $1.7 billion in annual revenues.
The JV, Fertiglobe, once completed will be the largest export-focused nitrogen fertiliser platform globally and the largest producer in the region. It will have a production capacity of five million tonnes of urea and 1.5 million tonnes of merchant ammonia. According to a statement from Adnoc, the new JV is supported by a young asset base and a robust storage and distribution infrastructure.
Fertiglobe’s complementary production and distribution locations bring geographic diversity and enhanced market access, benefitting both existing and new customers.
Commenting on the new venture, Dr Sultan bin Ahmad Al Jaber, Minister of State, Adnoc group CEO, and chairman of Fertiglobe, said: “The efficiency we have shown in completing this milestone transaction so quickly is a strong indication of the way that Fertiglobe will operate in the future and a hallmark of what we hope to achieve by combining Adnoc’s fertiliser platform and OCI’s Mena-based fertiliser assets.”
“Working alongside our partner OCI, we look forward to significantly growing our newly combined fertiliser businesses, accessing new markets and bringing significant benefits to all our customers.
The close of this transaction is yet another example of the further progress that Adnoc is making in delivering on its 2030 strategy and specifically its ambitions to expand its Downstream portfolio,” he added.
Nassef Sawiris, the chief executive of OCI and Fertiglobe, said: “It underscores our commitment to create value in the fertiliser industry, at the same time helping develop a more efficient market-place for our customers. This platform has a solid financial profile and has significant potential for future growth and value creation, with the support and under the guidance of its two key shareholders.”
This transaction will place the companies EBIC, EFC, Sorfert, and Fertil (formerly Adnoc Fertilisers) under the ownership of the new company Fertiglobe.
