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OCI and ADNOC partner to establish nitrogen fertiliser joint venture

Industry

Chemicals and fertilisers major OCI and Abu Dhabi National Oil Company (ADNOC) have completed the transaction to create a new nitrogen fertiliser joint venture (JV) called Fertiglobe

The partnership combines ADNOC’s fertiliser business into OCI’s Middle East and North Africa (MENA) nitrogen fertiliser platform, with the new firm headquartered in Abu Dhabi.

The JV has more than US$1.7bn of annual revenues based on 2018 pro forma figures. OCI will fully consolidate the combined business. It began trading on 1 October.

Fertiglobe will be the largest export-focused nitrogen fertiliser platform globally, and the largest producer in the MENA region with a production capacity of five million tonnes of urea and 1.5mn tonnes of merchant ammonia, according to the two companies.

Following the close of the transaction, Fertiglobe will focus on the integration of the two businesses.

Sultan Ahmed Al Jaber, UAE Minister of State, CEO of the ADNOC Group and chairman of the new joint venture, Fertiglobe, said, “Working alongside our partner OCI, we look forward to significantly growing our newly combined fertiliser businesses, accessing new markets and bringing significant benefits to all our customers. The close of this transaction is yet another example of the further progress that ADNOC is making in delivering on its 2030 strategy and specifically its ambitions to expand its downstream portfolio.”

Nassef Sawiris, CEO of OCI N.V. and CEO of the new joint venture, commented, “It underscores our commitment to creating value in the fertiliser industry, at the same time helping develop a more efficient market place for our customers. This platform has a solid financial profile and has significant potential for future growth and value creation, with the support and under the guidance of its two key shareholders”.

This transaction will place the companies EBIC, EFC, Sorfert, and Fertil (formerly ADNOC Fertilisers) under the ownership of Fertiglobe.

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