Adnoc Acquires Majority Stake in Fertiglobe
Abu Dhabi National Oil Company (Adnoc) is set to finalize its acquisition of a majority stake in Fertiglobe today. This follows its agreement to purchase OCI Global’s 50% stake plus one share. With this transaction, Adnoc’s shareholding in Fertiglobe will increase to 86.2%. The block trade was initiated on October 11 and will be settled on the Abu Dhabi Securities Exchange (ADX) today. The remaining 13.8% of shares will remain publicly traded on the ADX.
Key Details of the Fertiglobe Acquisition
Adnoc agreed to pay AED13.3 billion ($3.62 billion) for OCI’s stake, valuing the shares at AED3.20 each. This deal strengthens Adnoc’s presence in the fertilizer industry, making it a dominant player in the Middle East and North Africa region. Fertiglobe is the largest nitrogen fertilizer producer in the region and is headquartered in Abu Dhabi.
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Impact of the Acquisition on Fertiglobe
Despite the acquisition, Fertiglobe’s financial performance in 2024 has been impacted by market challenges. The company’s revenues dropped by 16% in the first half of the year, down from $1.24 billion to just over $1 billion. The decline is attributed to lower sales during this period.
Future Growth and Strategic Plans
Fertiglobe is expected to hold a webcast for investors and analysts today. During this event, management will outline future growth strategies and plans for adding value to the business. This acquisition marks a strategic move for Adnoc as it seeks to further diversify its portfolio.
Fertiglobe’s Strategic Role in the Region
Fertiglobe was created as a strategic partnership between OCI Global, a Dutch producer of nitrogen, methanol, and hydrogen products, and Adnoc. The company employs over 2,700 people and is a key player in the global fertilizer market. The increased stake by Adnoc is expected to boost its influence in the nitrogen fertilizer industry.
With Adnoc’s acquisition of OCI Global’s stake, the company’s hold over Fertiglobe strengthens significantly. The deal not only enhances Adnoc’s presence in the nitrogen fertilizer market but also positions Fertiglobe for future growth. Investors and analysts are keen to learn more about Fertiglobe’s growth prospects during the webcast later today. This acquisition marks a significant milestone in the Fertiglobe acquisition journey for 2024.