Abu Dhabi National Oil Company (ADNOC) and Dutch chemical producer OCI NV are discussing merging their fertilizer businesses in the Middle East, industry sources told Bloomberg.
“OCI continually considers strategic initiatives regarding its portfolio, including possible partnerships,” OCI said in a statement, adding that “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 two companies are about to announce their merger agreement during the upcoming days, Bloomberg noted.
The deal comes in line with ADNOC’s downstream expansion plan, as well as cooperating with partners for its pipeline network and refining units.