Fertiglobe to Boost Distribution with Wengfu Australia Acquisition

Fertiglobe, a major nitrogen fertilizer producer in the Middle East and North Africa, has announced its acquisition of Wengfu Australia's distribution assets. The transaction is structured around the net asset value, including fully recoverable net working capital, liquid inventory, and a premium of about $8 million. Fertiglobe's CEO, Ahmed El-Hoshy, emphasized that this acquisition is strategically beneficial, given Australia's status as a fast-expanding agricultural region. The move is expected to be earnings per share accretive for Fertiglobe. Financially, the acquisition will be supported through pre-arranged trade facilities, ensuring no adverse impact on the company's dividend payouts, which are set to total $275 million for the year, delivering a yield exceeding 5%. Fertiglobe is a venture formed by a partnership between OCI Global and ADNOC, with the latter holding a predominant stake.