Abu Dhabi National Oil Company (ADNOC) has completed the acquisition of OCI Global’s entire 50 percent +1 share stake in Fertiglobe, increasing its ownership stake in the Company to 86.2 percent, with 13.8 percent remaining in free float on the Abu Dhabi Securities Exchange (ADX).
The completion of this transaction marks a major milestone in ADNOC’s chemicals growth strategy, the expansion of its low-carbon fuels business, and supports its plans to become a top five global chemicals player.
As part of this strategy, ADNOC will transfer its stakes in existing and future low-carbon ammonia projects to Fertiglobe at cost and when ready for startup, creating a world-class growth platform for low-carbon ammonia as a key energy transition fuel. This includes its two lower-carbon ammonia projects in Abu Dhabi and other projects in its global portfolio.
On a consolidated basis, the two projects in Abu Dhabi would add ~2 mtpa, more than doubling Fertiglobe’s current merchant ammonia capacity of 1.6 mtpa and increasing its total sellable capacity to 8.6 mtpa of net ammonia and urea combined, in addition to other announced global projects.
H.E. Dr. Sultan Al Jaber, UAE Minister of Industry & Advanced Technology, MD and Group CEO, ADNOC
“ADNOC’s majority shareholding in Fertiglobe marks another milestone in the delivery of our ambitious international chemicals growth strategy and goal to become a top five chemicals player. Fertiglobe is a world-class company, and it will be the vehicle through which ADNOC advances its low-carbon ammonia business, supporting our efforts to enable a just, orderly, and equitable global energy transition. We see significant growth opportunities for Fertiglobe and I am confident that under the continued and dedicated leadership of Ahmed El-Hoshy, the company will deliver greater value for its shareholders.”
Ahmed El-Hoshy continues in his role as Fertiglobe’s CEO and steps down from his role at OCI Global, where he spent 15 years growing its US and European business in ammonia and methanol via greenfields, brownfields and acquisitions, centralizing leadership globally to extract synergies and ultimately generating significant value for shareholders by executing several recent divestments.
Ahmed El-Hoshy, Fertiglobe’s CEO, commented that, “The successful completion of the ADNOC transaction is a historic milestone for Fertiglobe, reinforcing the positive long-term outlook for our business and unique market position, while elevating our future ambitions. 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. We look forward to joining ADNOC’s integrated ecosystem and unlocking the full potential of our product portfolio while maximizing shareholder value and maintaining our commitment to balancing disciplined growth with dividend distributions.”
Fertiglobe will benefit from leveraging ADNOC’s ecosystem to drive disciplined growth within its low-carbon ammonia value chain, including its strategic access to key energy customers globally, extensive experience in carbon capture and sequestration (CCS) to support low-carbon ammonia production, its leadership in maritime energy logistics, as well as its advanced capabilities in AI across functions.
