Fertiglobe is expected to challenge US and Russian exports thanks to Adnoc's distribution infrastructure and access to key ports
Abu Dhabi National Oil Company (Adnoc) has signed an agreement with Netherland-based chemical firm OCI NV in order to merge the companies’ fertiliser and nitrogen fertiliser platforms in the MENA region.
The joint venture Fertiglobe, which will be based in the Abu Dhabi Global Market, has over $1.7 billion of annual revenues based on 2018 pro forma figures.
The company will become the world’s largest export-focused nitrogen fertiliser business as well as the region’s largest producer with a capacity of five million tonnes of urea and 1.5 million tonnes of merchant ammonia.
According to Adnoc, Fertiglobe boasts young asset base, robust storage and distribution infrastructure and access to key ports in the Mediterranean, Red Sea and Arabian Gulf which will benefit existing and new customers. It is therefore expected to challenge US and Russian exports.
"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,” said Dr Sultan bin Ahmad Sultan Al Jaber, Minister of State, Adnoc Group CEO, and Chairman of Fertiglobe.
"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 fertiliser businesses, accessing new markets and bringing significant benefits to all our customers," he added.
The joint venture will see companies EBIC, EFC, Sorfert, and Fertil (formerly Adnoc Fertilisers) placed under the ownership of Fertiglobe.