UAE - Mubasher: Abu Dhabi National Oil Company (ADNOC) and OCI N.V. announced they have closed a strategic partnership agreement to establish a joint venture, combining ADNOC’s fertiliser business into OCI’s Middle East and North Africa (MENA) nitrogen fertiliser platform, Emirates News Agency (WAM) reported.
Under this agreement, the companies EBIC, EFC, Sorfert, and Fertil, formerly known as ADNOC Fertilisers, will be under the ownership of the combined company Fertiglobe, according to WAM.
Fertiglobe, the JV headquartered in the award-winning international financial centre Abu Dhabi Global Market (ADGM), has annual revenues of more than $1.7 billion based on 2018 pro forma figures.
The Netherlands-based OCI will fully consolidate the combined business, expected to be the largest export-focused nitrogen fertiliser platform globally.
The JV is also expected to be the largest producer in the MENA region with a production capacity of five million tonnes of urea and 1.5 million tonnes of merchant ammonia, the state-run news agency said.
Sultan bin Ahmad Sultan Al Jaber, Minister of State, ADNOC Group CEO, and chairman of Fertiglobe, commented: "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 fertiliser platform and OCI’s MENA-based fertiliser assets.”
For his part, Nassef Sawiris, CEO of OCI N.V. and CEO of the new JV, said: "This platform [Fertiglobe] 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".
