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OCI N.V. and ADNOC Close Strategic Partnership Agreement, Establishing Fertiglobe, a New Global Nitrogen Fertilizer Leader

The joint venture, Fertiglobe, will start trading on 1 October 2019

Fertiglobe to be the world’s largest export-focused nitrogen fertilizer platform with production capacity of 6.5 million tons of urea and merchant ammonia

OCI and ADNOC will own a 58% and 42% stake in Fertiglobe, respectively

Innovative approach to growth by asset contribution achieves overnight scale, without any capital outlay

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Abu Dhabi, UAE and Amsterdam, The Netherlands – September 30, 2019: OCI N.V. (Euronext: OCI) and Abu Dhabi National Oil Company (ADNOC) today announced the completion of their transaction to combine ADNOC’s fertilizer business into OCI’s Middle East and North Africa (MENA) nitrogen fertilizer platform, creating a world-leading joint venture. The combined company, which has been named Fertiglobe and is headquartered in the international financial center Abu Dhabi Global Market, has over $1.7 billion of annual revenues based on 2018 pro forma figures. OCI will fully consolidate the combined business. 

Fertiglobe will be the largest export-focused nitrogen fertilizer platform globally, and the largest producer in the MENA region with a production capacity of 5 million tons of urea and 1.5 million tons of merchant ammonia. It is underpinned by a young asset base and a robust storage and distribution infrastructure with access to key ports on the Mediterranean, Red Sea and Arabian Gulf. Fertiglobe’s complementary production and distribution locations bring geographic diversity and enhanced market access, benefitting both existing and new customers. 
Following the close of the transaction, Fertiglobe will focus on the integration of the two businesses, which is expected to create significant value through the unlocking of commercial and technical synergies.
 


H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State, CEO of the ADNOC Group and Chairman of the new joint venture, Fertiglobe, said: “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 fertilizer platform and OCI’s MENA-based fertilizer assets. We have laid careful groundwork to extract and promote synergies throughout our strategically placed production assets and distribution network. Working alongside our partner OCI, we look forward to significantly growing our newly combined fertilizer businesses, accessing new markets and bringing significant benefits to all our customers. The close of this transaction is yet another example of the further progress that ADNOC is making in delivering on its 2030 strategy and specifically its ambitions to expand its Downstream portfolio.”

Nassef Sawiris, CEO of OCI N.V. and CEO of the new joint venture commented: “I am very pleased that we have completed this landmark transaction in such a short time frame, which brings together two like-minded partners. It underscores our commitment to create value in the fertilizer industry, at the same time helping develop a more efficient market place for our customers. This platform 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”.

This transaction will place the companies EBIC, EFC, Sorfert, and Fertil (formerly ADNOC Fertilizers) under the ownership of the joint venture Fertiglobe, an ADNOC-OCI company. 
 

Release Details

September 30, 2019

About ADNOC

ADNOC is a leading diversified energy and petrochemicals group. Headquartered in Abu Dhabi, ADNOC is a primary catalyst for the UAE’s growth and diversification. To find out more, visit www.adnoc.ae

For media inquiries please contact:

Philip Robinson
Manager, ADNOC External Relations
+971 (0) 50 504 4934
probinson@adnoc.ae

About Fertiglobe

Fertiglobe is the world’s largest seaborne exporter of nitrogen fertilizer globally and the largest producer in the Middle East and North Africa (MENA). Fertiglobe has a production capacity comprises of 6.6 million tons of sellable urea and merchant ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria and benefits from direct access to six key ports and distribution hubs on the Mediterranean Sea, Red Sea, and the Arab Gulf. Established in 2019 and headquartered in Abu Dhabi, Fertiglobe is a 58/42 partnership between OCI N.V. and the Abu Dhabi National Oil Company (ADNOC).

For more information visit: www.fertiglobe.com 

About OCI N.V.

OCI N.V. (Euronext: OCI) is a leading global producer and distributor of nitrogen and methanol products providing lower carbon fertilizers, fuels, and feedstocks to agricultural, transportation, and industrial customers around the world. OCI’s production capacity spans four continents and comprises approximately 16.2 million metric tons per year of nitrogen fertilizers, methanol, biofuels, diesel exhaust fluid, melamine, and other nitrogen products. OCI has more than 3,600 employees, is headquartered in the Netherlands and listed on Euronext in Amsterdam.