ADNOC takes strategic steps to expand chemicals business with major acquisitions

9/11/2024 9:13:13 AM

(MENAFN) Last week, the Abu Dhabi National Oil Company (ADNOC) achieved a major milestone in its strategy to enhance its chemicals business by finalizing an agreement to acquire a 35 percent stake in ExxonMobil’s forthcoming low-carbon hydrogen and ammonia production facility located in Baytown, Texas. This Acquisition is a critical part of ADNOC’s broader plan to establish itself as a leading player in the global chemicals market. The company's strategy emphasizes the expansion and development of a robust chemicals production platform that can meet the increasing demand for low-carbon petrochemicals, ammonia, and hydrogen, while also contributing to global emission reduction goals. By pursuing growth both locally and internationally, ADNOC aims to future-proof its business and open new revenue streams.

In addition to this significant acquisition, ADNOC’s plans to acquire a controlling interest in OCI's Fertiglobe are progressing well. The deal involves ADNOC purchasing OCI’s 50% plus one share stake in Fertiglobe, and is expected to reach completion by the fourth quarter of 2024. This move follows a sale and purchase agreement signed in December 2023, which outlines ADNOC's acquisition of OCI’s entire stake in Fertiglobe. Once the transaction is finalized, ADNOC will become the majority shareholder in Fertiglobe. According to an ADNOC spokesperson, this acquisition aligns with the company's ambitious growth strategy in the chemicals sector and will support the development of a sustainable global blue ammonia platform. It will also enable Fertiglobe to expand its market reach and explore new product opportunities, particularly in the emerging low-carbon solutions sector. The acquisition is moving forward smoothly, with several approvals already secured and all remaining approvals anticipated in the coming months.

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