ADNOC finalizes purchase of OCI’s stake in seaborne exporter of ammonia Fertiglobe

Abu Dhabi National Oil Company (ADNOC) has completed the acquisition of OCI Global’s 50% + 1 shareholding in the seaborne exporter of ammonia Fertiglobe, increasing its share in the company to 86.2%, with 13.8% remaining in free float on the Abu Dhabi Securities Exchange (ADX).

ADNOC revealed it will transfer its stakes in existing and future low-carbon ammonia projects to Fertiglobe at cost and when ready for startup, creating a growth platform for low-carbon ammonia. This includes two lower-carbon ammonia projects in Abu Dhabi and other projects in the company’s global portfolio. On a consolidated basis, ADNOC said that 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.

According to ADNOC, Fertiglobe will continue to grow its low-carbon fuels business, with the current management team staying in place, including Ahmed El-Hoshy in his continued role as the company’s CEO.

To note, Fertiglobe is said to be the “world’s largest” seaborne exporter of urea and ammonia combined, exporting to 53 countries with a ~10% collective market share of global trade in these products. In July 2024, the company emerged as the winning bidder of the first H2Global pilot auction for renewable ammonia, funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK). It secured €397 million of renewable ammonia offtake to Europe at a delivered price of €1,000 per ton until 2033.

Sultan Ahmed Al Jaber, ADNOC’s Managing Director and Group CEO, commented: “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 stated: “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 maximizing shareholder value and maintaining our commitment to balancing disciplined growth with dividend distributions.”

To remind, Fertiglobe was formed as a strategic partnership between ADNOC and OCI in September 2019, with a subsequent listing on the ADX in 2021. The parties entered a sale and purchase agreement for ADNOC to acquire OCI’s majority shareholding in Fertiglobe in late 2023.