ADNOC acquires chemicals giant for $3.62 billion

ADNOC has agreed to fully acquire European chemical producer OCI’s stake in ammonia and urea giant Fertiglobe for USD 3.62 billion, the Emirati NOC announced on Friday.

Under the deal, ADNOC will become the majority stakeholder in Fertiglobe, with an 86.2% stake. The remaining shares are floated on the Abu Dhabi Securities Exchange.

Fertiglobe was established in 2019 after OCI and ADNOC combined their ammonia and urea assets.

The chemicals producer is now the world’s largest seaborne exporter of urea and ammonia combined and owner of the largest nitrogen fertiliser producer in the MENA region.

Fertiglobe has production plants in Egypt, Algeria and the UAE.

The acquisition is expected to close in 2024.

ADNOC and OCI have also signed an MoU to partner on projects in the USA and increasing ammonia imports into Europe.

The deal is part of ADNOC’s plans to create an global platform for ammonia.

In December 2022, ADNOC agreed to purchase Mubadala Investment Company’s 24.9% stake of Austrian energy and chemicals company OMV.

The deal increased ADNOC’s shareholdings with Austrian chemicals giant Borealis through OMV’s controlling 75% stake and Borouge, a joint venture between ADNOC and Borealis that produces polyolefins.

In July 2023, ADNOC and Austria’s OMV entered into formal negotiations to merge the petrochemicals companies Borouge and Borealis to create a petrochemicals holding entity that would have sales of around USD 20 billion per year.

The official merger between Borouge and Borealis and has yet to close.