ADNOC, Sawiris-owned OCI create world's largest fertilizer exporter
The Abu Dhabi National Oil Co (ADNOC) and Dutch firm OCI have agreed to form a joint venture, combining the former’s fertilizer business with OCI's MENA nitrogen fertilizer platform, the companies said in a statement on Monday.
OCI, owned by Egyptian billionaire Nassef Sawiris, will own a 58 percent stake in the joint venture, while ADNOC will own a 42 percent stake.
The joint venture will be the largest producer of nitrogen fertilizer in the Middle East and North Africa (MENA) region, and the largest exporter of nitrogen fertilizer globally.
The JV will have a production capacity of 5 million tons of urea and 1.5 million tons of sellable ammonia. Combined annual revenues of the entity, which will be registered at the Abu Dhabi Global Market, will be $1.74 billion.
The merger of fertilizer assets will enable ADNOC to access new markets, benefitting both existing and new customers, said Sultan Al Jaber, Group chief executive, ADNOC, who will also be the chairman of the new entity.
Currently, ADNOC sells fertilizer product to customers in India, the US, Latin America and Australia.