The combined company, which has been named Fertiglobe and is headquartered in Abu Dhabi, has over US$1.7 billion of annual revenues based on 2018 pro forma figures. OCI will fully consolidate the combined business. It began trading on 1 October.
ADNOC and OCI are seeking to make Fertiglobe the largest export-focused nitrogen fertilizer platform globally, and the largest producer in the MENA region, with a production capacity of 5 million t of urea and 1.5 million t of merchant ammonia.
Following the close of the transaction, for which a law was passed to change the legal form of ADNOC Fertilizers to allow its legal transfer to Fertiglobe, the JV will focus on the integration of the two businesses.
H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State, CEO of the ADNOC Group and Chairman of Fertiglobe, said: “The efficiency we have shown in completing this milestone transaction so quickly is a strong indication of the way that Fertiglobe will operate in the future and a hallmark of what we hope to achieve by combining ADNOC’s fertilizer platform and OCI’s MENA-based fertilizer assets. We have laid careful groundwork to extract and promote synergies throughout our strategically placed production assets and distribution network. Working alongside our partner OCI, we look forward to significantly growing our newly combined fertilizer 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 Fertiglobe, commented: “I am very pleased that we have completed this landmark transaction in such a short time frame, which brings together two like-minded partners. It underscores our commitment to create value in the fertilizer 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 Fertilizers) under the ownership of Fertiglobe.
Read the article online at: https://www.worldfertilizer.com/nitrogen/02102019/adnoc-and-oci-joint-venture-begins-trading/