Abu Dhabi National Oil Company (Adnoc) and OCI Global have sealed a sale and purchase deal for the acquisition by Adnoc of OCI’s entire majority shareholding in Fertiglobe.

Specifically, Adnoc and OCI entered into a binding agreement for Adnoc to purchase OCI’s entire stake in Fertiglobe for $3.62 billion, with the transaction expected to complete in 2024.

The agreement will make Adnoc the majority shareholder in Fertiglobe, increasing its shareholding to 86.2%, with 13.8% remaining in free float on ADX.

As the partners say this transaction supports Adnoc’s chemicals growth strategy and its plans to establish a global growth platform for ammonia.

Additionally, Adnoc and OCI will explore opportunities to cooperate on projects in the US, on ammonia imports into Europe, and broader development of the low-carbon ammonia market.

Abu Dhabi-listed Fertiglobe is a seaborne exporter of urea and ammonia combined, a nitrogen fertilizer producer in the Middle East & North Africa, and an early mover in sustainable ammonia, with production facilities in Egypt, Algeria and the UAE.

Under the terms of the deal, Adnoc will purchase OCI’s 50% + 1 share stake in Fertiglobe at a price of AED 3.20 per share, representing a total purchase price of AED 13.28 billion ($3.62 billion).

Khaled Salmeen, executive director, downstream, marketing & trading directorate at Adnoc, said “this transaction supports Adnoc’s ambitious chemicals growth strategy and accelerates our plan to establish a global growth platform for ammonia and clean ammonia.”

Nassef Sawiris, vice chairman of Fertiglobe and executive chairman of OCI Global, noted that “OCI looks forward to continued collaboration with Adnoc which will focus on value accretive growth projects outside the Middle East.”