15-10-2024

ADNOC announces acquisition of Fertiglobe

Fertiglobe, today announced the successful completion of Abu Dhabi National Oil Company’s acquisition of OCI Global’s entire 50% +1 share stake in Fertiglobe. Having met all necessary legal and regulatory conditions, ADNOC has formally increased its ownership stake in the Company to 86.2%, with 13.8% remaining in free float on the Abu Dhabi Securities Exchange.

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.

His Excellency Dr. Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO, said: “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, centralising leadership globally to extract synergies and ultimately generating significant value for shareholders by executing several recent divestments. El-Hoshy has been CEO of Fertiglobe since 2021, playing a critical role in preparing the Company for its initial public offering (IPO), successfully navigating commodity market cycles, and leading Fertiglobe’s consolidation with ADNOC to create a global leader in low-carbon ammonia. With a solid base already established, he aims to continue leveraging ADNOC’s ecosystem to achieve further growth at Fertiglobe while maximising shareholder value. Fertiglobe’s wider executive leadership remains in place, including Haroon Rahmathulla in his position as Chief Operating Officer and Andrew Tait as Chief Financial Officer.

Ahmed El-Hoshy, Fertiglobe CEO commented: “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 maximising 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.