ADNOC receives European Commission’s stamp of approval in Navig8 acquisition

The European Commission has approved the acquisition of sole control of Navig8 Topco Holdings by Abu Dhabi Marine Business and Services Company (ADNOC) and the restructuring of ownership for the former’s subsidiary, Integr8 Fuels Holding, granting joint control of it to ADNOC and Navig8 Limited.

As disclosed, the commission confirmed that the acquisition does not raise competition concerns under the EU Merger Regulation, citing the companies’ “limited combined market position” as a ‘key’ factor in reaching this decision.

The commission also elaborated that the transaction primarily concerns shipping management services, ship chartering, and marine fuel trading.

In addition to this, the commission reached the conclusion that until June 30, 2027, Navig8 Limited will temporarily retain joint control over Integr8.

ADNOC’s shipping and maritime logistics arm, ADNOC Logistics and Services (ADNOC L&S) announced the planned acquisition of Navig8—which delivered EBITDA of around $400 million in 2023——in June this year when the move was described as an opportunity for “new growth and higher returns” and the expansion of the company’s blue-chip customer base.

More precisely, under the terms of the agreement, ADNOC L&S was set to acquire 80% of Navig8 for $1.04 billion with an economic ownership transfer effective from 1 January 2024. The remaining 20% ownership was to be taken over in 2027 for a deferred consideration of $335 million to $450 million.

“Navig8 is excited by ADNOC L&S’ investment into the company, which is a great credit to the hard work and dedication of the Navig8 global team over the last 17 years making this partnership possible. The opportunity to work collaboratively with ADNOC L&S and the wider ADNOC Group brings together their extensive knowledge of energy markets with Navig8’s unique presence in the maritime sector,” Nicolas Busch, Navig8 CEO, shared in a statement at that time.

“The addition of Navig8’s presence in 15 international cities, fleet of tankers and world-class services will expand our geographical footprint and service offering, cementing our position as a leading global energy maritime logistics and services company,” Captain Abdulkareem Al Masabi, ADNOC L&S CEO, noted when the transaction was initially revealed.

The year 2024 has been an array of other ‘strategic’ business shifts and acquisitions as industry players sought to ‘strengthen’ their position.

One notable example took place in October this year when Swiss shipping colossal Mediterranean Shipping Company (MSC) became the co-owner of Germany’s logistics company Hamburger Hafen und Logistik Aktiengesellschaft (HHLA) following the European Commission’s stamp of approval.

Following all regulatory approvals to participate in the ownership structure of HHLA, it was revealed that as of November 14, 2024, all closing conditions for the voluntary public takeover offer of Port of Hamburg Beteiligungsgesellschaft SE (the bidder), a wholly owned subsidiary of MSC, had also been fulfilled.