{"id":36444,"date":"2023-12-17T05:55:08","date_gmt":"2023-12-17T05:55:08","guid":{"rendered":"https:\/\/news.pakistaninewspaperlist.com\/abu-dhabis-adnoc-acquires-stake-for-3-6b-the-express-tribune\/"},"modified":"2023-12-17T05:55:08","modified_gmt":"2023-12-17T05:55:08","slug":"abu-dhabis-adnoc-acquires-stake-for-3-6b-the-express-tribune","status":"publish","type":"post","link":"https:\/\/pakistaninewspaperlist.com\/news\/abu-dhabis-adnoc-acquires-stake-for-3-6b-the-express-tribune\/","title":{"rendered":"Abu Dhabi\u2019s ADNOC acquires stake for $3.6b | The Express Tribune"},"content":{"rendered":"
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\nDUBAI:
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Abu Dhabi National Oil Co (ADNOC) has agreed to buy European chemical producer OCI\u2019s entire stake in ammonia and urea producer Fertiglobe for $3.62 billion.<\/span><\/p>\n

The transaction is the latest in a string of deals by the Abu Dhabi state oil giant as it deepens its foray into the chemicals business and will make it the majority shareholder in Fertiglobe.<\/span><\/p>\n

ADNOC\u2019s shareholding will increase to 86.2%, with 13.8% remaining in free float on the Abu Dhabi Securities Exchange (ADX), ADNOC and OCI said in a joint statement on Friday.<\/span><\/p>\n

Under the terms of the agreement, ADNOC will purchase OCI\u2019s 50% + 1 share stake in Fertiglobe at a price of 3.20 dirhams per share, representing a total purchase price of 13.28 billion dirhams ($3.62 billion).<\/span><\/p>\n

Headquartered in Abu Dhabi, Fertiglobe was formed in 2019 after OCI, backed by Egyptian billionaire Nassef Sawiris, and ADNOC combined their ammonia and urea assets.<\/span><\/p>\n

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\u201cThis important transaction supports ADNOC\u2019s ambitious chemicals growth strategy and accelerates our plan to establish a global growth platform for ammonia and clean ammonia,\u201d Khaled Salmeen, Executive Director, Downstream, Marketing and Trading Directorate at ADNOC was quoted saying.<\/span><\/p>\n

ADNOC and OCI said the agreement also \u201cincorporates an earn-out mechanism for 2024 and 2025, linked to commodity pricing and the free cash flow performance of the Fertiglobe business during the relevant period.\u201d<\/span><\/p>\n

The deal is expected to close in 2024, subject to legal and regulatory conditions including antitrust approvals. Shares in Euronext-listed OCI fell as much as 15% in late afternoon trading after the deal was announced.<\/span><\/p>\n

ADNOC\u2019s M&A spree has seen it scooping up assets in chemicals and gas fields and stepping up its global expansion in a concerted push to find new revenue streams to maximise earnings for the Gulf state.<\/span><\/p>\n

\u00a0It agreed last year to acquire stakes in Australian oil and gas group OMV and European petrochemical firm Borealis from Abu Dhabi sovereign wealth fund Mubadala Investment Company.<\/span><\/p>\n

It is also closing in on a deal with OMV to combine Borouge and Borealis to create a chemicals giant, Reuters reported on Thursday.<\/p>\n

Published in The Express Tribune, December 17th<\/sup>, 2023.<\/span><\/em><\/p>\n

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