OCI Global and Orascom Construction PLC have announced plans for a potential merger aimed at creating a scalable infrastructure and investment platform centered in Abu Dhabi, while also extending their global reach. The merger, referred to as the “Combination,” promises to unite the respective strengths of both companies, leveraging their capabilities for significant benefits in the infrastructure sector.
The planned Combination will merge Orascom Construction’s impressive backlog of USD 14 billion and its extensive expertise in delivering large-scale infrastructure projects, predominantly across the United States, GCC region, Egypt, Europe, and selected emerging markets, with OCI’s robust institutional investment platform and disciplined capital allocation track record. This collaboration is designed to unlock new growth opportunities by consolidating financial resources and enhancing funding capabilities for major infrastructure investments.
Moreover, the Combination will position both companies to tap into a worldwide infrastructure pipeline covering various sectors such as digital, aviation, transportation, and energy. By combining their established records of delivering landmark projects—including data centers in the U.S. and significant infrastructure investments—these companies aim to create a diversified platform that provides recurring value over time.
Historically, both OCI and Orascom Construction have delivered substantial value through their collaborative efforts, particularly during periods when their businesses operated together in cement and natural gas-based industries. Orascom Construction, founded in 1950, has built a reputation as a leading global Engineering, Procurement, and Construction (EPC) firm, while OCI has emerged as a leader in the production of fertilizers and chemicals, including pioneering a greenfield blue ammonia plant in the U.S.
As part of the merger structure under consideration, Orascom Construction would emerge as the primary entity, listed on the Abu Dhabi Securities Exchange (ADX). Shareholders of OCI would receive shares in Orascom Construction based on predetermined valuation ratios following due diligence processes. Subsequent to the transaction, OCI would be liquidated and delisted from Euronext Amsterdam.
Both companies affirm their commitment to growth and value creation by exploring this Combination, with plans to secure the necessary approvals from both internal boards and relevant regulatory agencies once a transaction structure is finalized.
With a combined legacy of over 30 years, OCI and Orascom Construction are set to evaluate and capitalize on expansive infrastructure opportunities aligned with their core expertise and investment capabilities, signaling an ambitious new phase for their stakeholders and the sectors they serve.
