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Adnoc finalizes Fertiglobe acquisition: Abu Dhabi National Oil Company (Adnoc) completed its USD 3.62 bn acquisition of OCI Global’s 50% +1 stake in Fertiglobe, the Netherlands-domiciled chemical producer, according to a press release (pdf) shared with EnterpriseAM UAE. The transaction increases Adnoc’s stake in Fertiglobe to 86.2%, with the remaining 13.8% in free float on the ADX.
El Hoshy to continue leading: Fertiglobe’s management team remains in place, with our friend Ahmed El-Hoshy staying on as CEO. El-Hoshy, who has led Fertiglobe since 2021, will step down from his twin role as CEO of OCI Global. “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,” El Hoshy said.
What this means for Fertiglobe: Adnoc will “transfer its stakes in existing and future low-carbon ammonia projects to Fertiglobe at cost,” according to the statement. This includes two lower-carbon ammonia projects in Abu Dhabi and other global projects. The transfer is expected to add some 2 mn tonnes per annum (mtpa), more than doubling Fertiglobe’s current capacity of 1.6 mtpa. Once completed, the total sellable capacity for Fertiglobe will rise to 8.6 mtpa for ammonia and urea combined.
Aiming for the top five globally: The transaction marks a “milestone in our ambitious international chemicals growth strategy and our goal to become a top five chemicals player,” Adnoc Managing Director and Group CEO Sultan Ahmed Al Jaber said.
Fertiglobe is targeting USD 150 mn in incremental annual EBITDA by the end of 2025 and will outline its detailed growth strategy in 1Q 2025.
New board coming: A general assembly will take place on 24 October for shareholders to elect a new board, reflecting the updated shareholding structure.
If you invested in Fertiglobe at the time of its IPO, you did well: The company has approved a USD 150 mn dividend for 1H 2024 that’s payable this month. That will mean the company has doled our dividends worth more than USD 2.4 bn since IPOing in late 2021 — a figure it says is “one of the highest dividend yields and total return metrics in its sector.”
BACKGROUND- Adnoc obtained all necessary approval for the acquisition earlier this week. The two companies had signed a binding agreement for the sale of OCI’s Fertiglobe stake in December.
Fertiglobe has been busy: In December, it sent the world’s first ISCC PLUS-certified green ammonia shipment to India from its Egypt facility. Recently, it secured a EUR 397 mn offtake agreement with Germany’s H2Global program to supply green ammonia to the EU from 2027 to 2033. The company signed a shareholder agreement to build a facility in the UAE to produce 1 mn tons of low-carbon ammonia annually, partnering with ADNOC-ADQ JV Ta’ziz, GS Energy, and Mitsui, and is exploring a green hydrogen project with Masdar and Engie.
