Latest news with #Wengfu
Arabian Business
13-05-2025
- Business
- Arabian Business
Abu Dhabi's Fertiglobe to acquire Wengfu Australia's distribution business
Abu Dhabi-based Fertiglobe has signed an asset sale and purchase agreement to acquire the distribution assets of Wengfu Australia, a leading fertiliser distribution business. Wengfu operates in South-East Australia from five ports with eight warehouses, distributing 700-800kt of fertilisers annually to over 200 customers. It has the capacity to scale up to 1.1 million tons per annum, making it a leading supplier in one of the world's fastest-growing agricultural markets. Boosting Fertiglobe's market presence The purchase price will be determined on the basis of net asset value, consisting of fully recoverable net working capital and liquid inventory, plus a premium of approximately US$8 million. The transaction is expected to be accretive to earnings per share. Fertiglobe currently supplies nearly 600kt of urea annually to Australia, with the potential to significantly grow supply volumes through the Wengfu platform to meet demand. The acquisition aligns with Fertiglobe's strategy to expand its presence in key strategic sectors, diversify its global footprint, and build resilience against seasonality. It provides access to a broader customer base, unlocks supply chain efficiencies, and supports the introduction of enhanced-efficiency and sustainable fertilisers. Fertiglobe will also be able to widen its distributed product portfolio to non-nitrogen fertilisers and expand fertiliser sourcing flexibility to supply the wider Asia-Pacific region. Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe, commented: 'Acquiring Wengfu's assets marks a strategic step in our value-driven growth strategy and accelerates our commercial footprint in Australia – one of the world's fastest-growing agricultural regions. 'It also provides us with a strong distribution platform across the Asia-Pacific region, strengthens access to our customers, and enhances our ability to competitively source and deliver our products and services. Having known Wengfu's team for several years, we have strong confidence in their ability to grow the business from here.' The acquisition will be financed through pre-arranged trade facilities, with no impact on Fertiglobe's dividend distribution capability and minimal impact on leverage. Fertiglobe is the world's largest seaborne exporter of urea and net ammonia combined, the largest nitrogen fertiliser producer in the Middle East and North Africa region, and ADNOC's low-carbon ammonia platform. Its production capacity comprises of 6.6 million tons of urea and merchant ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria. Wengfu Australia is part of China's Guizhou Phosphate & Chemical Group (GPC), which was created in 2019 through a merger of Wengfu Group and Guizhou Kailin Fertilizer Group to create the world's third-largest manufacturer of phosphate fertiliser and phosphate chemical products.
Trade Arabia
12-05-2025
- Business
- Trade Arabia
Fertiglobe to acquire Wengfu Australia's distribution assets
Fertiglobe, the world's largest seaborne exporter of urea and net ammonia combined, the largest nitrogen fertilizer producer in the Middle East and North Africa region, and Adnoc's low-carbon ammonia platform, has signed an asset sale and purchase agreement to acquire the distribution assets of Wengfu Australia, a leading fertilizer distribution business. The purchase price will be based on the net asset value, consisting of fully recoverable net working capital and liquid inventory, plus a premium of ~US$8 million, a statement said. The transaction is expected to be earnings per share accretive. Wengfu operates in South-East Australia from five ports with eight warehouses, distributing 700-800kt of fertilizers annually, to over 200 customers, with capacity to scale up to 1.1 million tons per annum. This makes Wengfu a leading supplier in one of the world's fastest-growing agricultural markets, known for high quality standards and a well-established supply chain. Wengfu's experienced team and longstanding customer relationships will further support the business's future growth and continuity. This acquisition aligns with Fertiglobe's strategy to expand its presence in key strategic sectors, diversify its global footprint, and build resilience against seasonality. It provides access to a broader customer base, unlocks supply chain efficiencies, and supports the introduction of enhanced-efficiency and sustainable fertilizers. This acquisition also enables Fertiglobe to widen its distributed product portfolio to non-nitrogen fertilizers and allows it to expand fertilizer sourcing flexibility to supply the wider Asia-Pacific region, the company said. The transaction is subject to customary regulatory and legal approvals. Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe, commented: 'Acquiring Wengfu's assets marks a strategic step in our value-driven growth strategy and accelerates our commercial footprint in Australia - one of the world's fastest-growing agricultural regions. It also provides us with a strong distribution platform across the Asia-Pacific region, strengthens access to our customers, and enhances our ability to competitively source and deliver our products and services. Having known Wengfu's team for several years, we have strong confidence in their ability to grow the business from here. The transaction is in line with our ambitions to expand our presence in key markets and reinforces our leadership position in the global nitrogen industry.' The acquisition will be financed through pre-arranged trade facilities, with no impact on Fertiglobe's dividend distribution capability and minimal impact on leverage. Fertiglobe's shareholders recently approved H2 2024 dividends of $125 million, taking total 2024 dividends to $275 million, implying an industry leading yield of +5%. Fertiglobe is the world's largest seaborne exporter of urea and ammonia combined, and an early mover in sustainable ammonia. Fertiglobe's production capacity comprises 6.6 million tons of urea and merchant ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria, making it the largest producer of nitrogen fertilizers in the Middle East and North Africa (MENA). It benefits from direct access to six key ports and distribution hubs on the Mediterranean Sea, Red Sea, and the Arab Gulf. Headquartered in Abu Dhabi and incorporated in Abu Dhabi Global Market (ADGM), Fertiglobe employs more than 2,700 employees. -
Zawya
12-05-2025
- Business
- Zawya
Abu Dhabi's Fertiglobe to acquire Wengfu Australia's distribution assets
Abu Dhabi-based Fertiglobe, one of the largest nitrogen fertilizer producers in the Middle East and North Africa (MENA), has signed an asset sale and purchase agreement to acquire the distribution assets of Wengfu Australia Pty Ltd. The purchase price will be based on the net asset value, consisting of fully recoverable net working capital and liquid inventory, plus a premium of approximately $8 million. Wengfu is a fertilizer distribution business and the transaction "is expected to be earnings per share accretive" to Fertiglobe. Fertiglobe CEO Ahmed El-Hoshy said the acquisition boosts its access to customers as Australia is one of the world's fastest-growing agricultural regions. The acquisition will be financed through pre-arranged trade facilities, with no impact on Fertiglobe's dividend distribution capability. Its shareholders recently approved H2 2024 dividends of $125 million, taking total 2024 dividends to $275 million, implying an industry leading yield of +5%. Fertiglobe was formed as a partnership between OCI Global and ADNOC in September 2019. ADNOC owns 86.2% stake in the company. (Writing by Brinda Darasha; editing by Daniel Luiz)
