Fertiglobe acquires distribution assets of Wengfu Australia

02/10/2025 05:40 AST

Fertiglobe, the exclusive ammonia platform of Adnoc and XRG, has completed the acquisition of the distribution assets of Wengfu Australia Pty Ltd, a leading fertilizer distribution business.

This acquisition reinforces Fertiglobe's commitment to customer proximity in key markets, in line with its 'Grow 2030 Strategy', the company said.

Fertiglobe is the world's largest seaborne exporter of urea and net ammonia combined and the largest nitrogen fertilizer producer in the Middle East and North Africa region.

The acquired assets are strategically located across 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.

Fertiglobe Australia Pty Ltd (Fertiglobe Australia), a fully owned subsidiary of Fertiglobe, has been established as the legal entity that will operate the acquired distribution assets under the Fertiglobe brand. Through this acquisition, Fertiglobe has become a leading supplier in one of the world's fastest-growing agricultural markets, with assets recognised for their high-quality standards and a well-established supply chain.

The acquisition of Wengfu Australia's distribution assets marks a significant step toward Fertiglobe's 'customer proximity' pillar of its recently announced 'Grow 2030 Strategy' to become a global integrated nitrogen champion and is expected to generate incremental annual EBITDA of $23 million by 2030. The acquisition is set to be financed using pre-arranged short-term financing facilities, with no impact on Fertiglobe's dividend distribution capability and minimal impact on net debt/ LTM adjusted EBITDA (1.2x as of June 2025), it said.

Trade Arabia