Bloomberg uncovered ongoing talks between Abu Dhabi National Oil Co. and Dutch chemical producer OCI NV run by Egyptian billionaire Nassef Sawiris to combine their Middle Eastern fertilizer businesses.
The economic news portal quoted sources that an agreement between the state-owned energy company and OCI could be announced in days.
"OCI continually considers strategic initiatives regarding its portfolio, including possible partnerships," OCI said in a statement after Bloomberg News reported on the talks.
"In this context, OCI confirms that it is in discussions with ADNOC on a possible cooperation relating to each company’s MENA fertilizer assets. There can be no assurance that any transaction will ultimately take place", the company added.
According to Bloomberg, Adnoc Fertilizers was set up in 1980 to make urea for agricultural use. It sells its products to local and international markets, including the Indian subcontinent, the U.S., Latin America, Australia and Europe. French energy giant Total SA holds a 33% stake in Adnoc Fertilizers, according to its website.
On other hand, OCI owns a plant in Egypt with capacity to produce about 1.65 million metric tons of granular urea per year, according to its latest annual report. It also has a 60% stake in another Egyptian production complex that makes anhydrous ammonia, as well as a trading arm in the United Arab Emirates.
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