UAE Edition 
Egypt Edition 
Saudi Edition 
MENA <> India Corridor 
Logistics (MENA) 
Climate (MENA) 
Share
Read Full Issue 
ADNOC is acquiring OCI’s share in Fertiglobe:Abu Dhabi National OilCompany (ADNOC) has inked a binding agreement with Netherlands-based chemical producer OCI to acquire OCI’s entire 50% stake in ammonia and urea producer Fertiglobe for USD 3.62 bn, according to statements by the three companies (here, here, and here, pdf). The transaction prices Fetiglobe shares at an 8% premium at AED 3.20 per share and is expected to close in 2024, according to the statements.
Remember: Fertiglobe is a joint venture between ADNOC and OCI, which is owned by Egyptian b’naire Nassef Sawiris. The two companies set up the JV back in 2019. Fertiglobe is currently developing ADNOC’s Ta’ziz project, the first low-carbon ammonia project in the UAE and the MENA region. The plant is expected to operate with the capacity of about 1 mn tons annually.
Who will own what? The transaction will see ADNOC up its stake in Fertiglobe to 86.2%. The remaining 13.8% of shares will continue to be traded in freefloat on the Abu Dhabi Securities Exchange (ADX).
Market reax: Following news of the agreement being made official, Fertiglobe’s shares inched up 0.3% during trading on Friday to AED 3.01 a share — 6.1% below the premium penciled into the agreement. Euronext-listed OCI’s shares dropped 13.7% to EUR 20.12 a share by the end of trading Friday.
With this acquisition, ADNOC is growing its presence in Egypt through Fertiglobe: Fertiglobe is currently working with the Sovereign Fund of Egypt and Norwegian renewables developer Scatec on a 50-100 MW green hydrogen plant in Ain Sokhna. The largest fertilizer producer in the MENA region also recently shipped the world’s first ISCC PLUS-certified (International Sustainability and Carbon Certification) green ammonia from the company’s pilot green hydrogen electrolyzer in Egypt.
This isn’t the end of the road for Sawiris and ADNOC: OCI and ADNOC have agreed to explore joint investments in decarbonization and product distribution projects in North America and Europe, OCI said. Sawiris’ private investment office NNS — which recently moved its headquarters to Abu Dhabi, as we noted last week — will also be investing in Fertiglobe, “demonstrating NNS’s deep conviction … in the material value creation that lies ahead for Fertiglobe under ADNOC’s stewardship,” Sawiris said.
