Netherlands-headquartered OCI NV and Abu Dhabi National Oil Co. (ADNOC) have 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, started trading on Oct. 1 and is headquartered in the international financial center Abu Dhabi Global Market.
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 mt/y of urea and 1.5 million mt/y of merchant ammonia. It has over $1.7 billion of annual revenues based on 2018 pro-forma figures. OCI will fully consolidate the combined business. OCI owns a 58 percent stake in Fertiglobe, and ADNOC a 42 percent stake.
The transaction will place the OCI companies EBIC, EFC, and Sorfert, and the former ADNOC Fertilizers (Fertil) under the ownership of the new Fertiglobe joint venture. The two parties first revealed their plans in June to combine their Middle East and North African fertilizer assets in a new joint venture.