Fertiglobe, a company based in Abu Dhabi, agrees to buy Wengfu Australia’s distribution business
Fertiglobe, a company based in Abu Dhabi, has made a deal with Wengful Australia to buy its distribution business. This will help Fertiglobe reach more customers in Australia and grow its business in the Asia-Pacific region.
Acquisition details
Fertiglobe said on Monday that the cost to buy the company will be based on the value of its assets, including working capital and inventory, plus an extra $8 million.
The deal is expected to increase Fertiglobe’s earnings per share (EPS) by 2.8% in 2026 and 4.1% in 2027, before any added benefits from working together.
Wengfu works in South-East Australia from five ports and eight warehouses. They distribute 700,000 to 800,000 tons of fertilizers each year to over 200 customers and can increase to 1.1 million tons per year.
This makes Wengfu a top supplier in one of the fastest-growing farming areas in the world. They are known for high quality and a strong supply chain.
Fertiglobe, based in Abu Dhabi, is the world’s largest ship exporter of urea and ammonia and the top nitrogen fertilizer producer in the Middle East and North Africa. They currently supply 600,000 tons of urea to Australia every year. Through Wengfu, they can grow their supply to meet more demand.
This purchase helps Fertiglobe grow faster in the Asia-Pacific region and fits their plan to strengthen their position, make their supply chain stronger, and create new opportunities.
The deal will be paid for with pre-arranged trade loans. It won’t affect Fertiglobe’s ability to pay dividends and will only slightly increase their debt.
Important quote
“Buying Wengfu’s assets is an important step in our growth plan and helps us expand in Australia, which is a fast-growing farming region,” said Fertiglobe CEO Ahmed El-Hoshy, who is ranked sixth on Forbes Middle East’s Sustainability Leaders 2024 list.
“It also gives us a strong distribution network in Asia-Pacific, improves how we reach customers, and helps us better supply and deliver our products. This deal matches our goal to grow in key markets and keeps us a leader in the nitrogen fertilizer industry.”
Benefits
The acquisition fits Fertiglobe’s strategy, supported by majority owner ADNOC, to grow in important sectors, increase global reach, and handle seasonal changes better. It gives them more customers, improves supply chain efficiency, and helps them offer better and more sustainable fertilizers.
It also lets Fertiglobe add more types of fertilizers beyond nitrogen and increase supply options for the Asia-Pacific region.
Dividends
Fertiglobe’s shareholders recently approved $125 million in dividends for the second half of last year. This brings the total dividends for 2024 to $275 million, which is a strong 5% yield compared to others in the industry.
Published: 15th May 2025
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