The European Commission has approved the acquisition of sole control of Fertiglobe plc by state-owned Abu Dhabi National Oil Co. (ADNOC), both of the United Arab Emirates.
The EC concluded that the transaction would not raise competition concerns, given the companies’ limited market positions resulting from the proposed transaction and the limited impact on the market structure.
OCI NV and ADNOC announced on Dec. 15, 2023, that they had entered into a binding sale and purchase agreement for ADNOC to acquire OCI’s 50% + 1 share stake in Abu Dhabi-based Fertiglobe Plc for a total consideration of $3.62 billion.
Following the completion of the transaction, OCI will have fully exited the Fertiglobe joint venture while ADNOC’s shareholding in the jv will increase to 86.2%. The free float traded on the Abu Dhabi Securities Exchange will remain at 13.8%. The transaction is expected to close in 2024, subject to regulatory conditions and antitrust approvals.
Brazil antitrust regulator Administrative Council for Economic Defense (CADE) approved the deal earlier this year (GM March 1, p. 30).