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Adnoc to finalize Fertiglobe acquisition this week: Abu Dhabi National Oil Company (Adnoc) has secured all necessary approvals to acquire Netherlands-based chemical producer OCI Global’s 50% +1 stake in their joint venture Fertiglobe, it said in an ADX disclosure (pdf). The transaction, which was originally unveiled in December 2023, is now set to close on Tuesday, 15 October, after which Fertiglobe’s management plans to host a conference call for investors and analysts to outline future growth strategies.
Background: The two companies signed a binding agreement for the sale of OCI’s stake in Fertiglobe in December. The transaction will see Adnoc’s stake in Fertiglobe increase to 86.2%, with the remaining in freefloat on the ADX. Fetiglobe shares were priced at an 8% premium at the time at AED 3.20 (c.USD 0.87) per share. The company’s stock closed last week at AED 2.73, up 10.1%.
Fertiglobe is positioning itself as a major global ammonia player: Fertiglobe sent the world’s first ISCC PLUS-certified green ammonia shipment to India from its electrolyzer facility in Egypt’s Suez Canal Economic Zone in December. The company recently secured a EUR 397 mn offtake agreement from the German government’s H2Global program to supply green ammonia to the EU from its Egyptian facilities between 2027 and 2033, and signed a shareholder agreement to construct a facility to produce some 1 mn tons of low-carbon ammonia annually in the UAE alongside Adnoc-ADQ JV Ta’ziz, GS Energy, and Mitsui. The company is currently studying another green hydrogen project in the UAE in collaboration with Masdar and Engie.
It’s likely not the end of the Adnoc / OCI partnership: They’re reportedly exploring the import and distribution of ammonia in the EU and are also looking into joint investments in North America.
