Abu Dhabi Securities Exchange-listed and Cairo-headquartered Orascom Construction is planning a potential merger with Netherland’s OCI Global that would establish a scalable global infrastructure and investment platform in the UAE capital.
OCI and Orascom Construction are exploring a structure whereby Orascom would be the acquiring ADGM-incorporated and ADX-primary listed entity. Subject to ongoing negotiations on the structure of the potential Combination, OCI shareholders would receive new Orascom Construction shares at a ratio to be determined after completion of reciprocal due diligence and relative valuation.
OCI would then subsequently be liquidated and delisted from Euronext Amsterdam.
OCI Global,Orascom announce Abu Dhabi merger
Orascom Construction and OCI have both executed landmark infrastructure transactions, industrial projects, and created global businesses.
In FY 2024, OCI Global reported Total Operations revenue of $4.08 billion and Total Operations adjusted EBITDA of $826 million.
Orascom’s revenue for FY 2024 was $3.25 billion, with adjusted EBITDA of $158.3 million and adjusted net income attributable to shareholders of $117.3 million.
Since its inception in 1950 by Onsi Sawiris, Orascom Construction has established a strong brand in delivering quality projects and building strong repeated alliances with partners and clients across the world to become a leading global Engineering, Procurement and Construction (EPC) player ranked among the world’s top 30 international contractors.
Since 1999, OCI, with its entrepreneurial investment, has developed a global leading cement, nitrogen, and methanol business, and pioneered the world’s first large-scale greenfield blue ammonia plant in the United States.
The periods of greatest value creation in Orascom Construction’s and OCI’s history have been when their businesses were combined – first in cement and later in natural gas-based industries. OCI, including Orascom Construction in its predecessor form, has distributed dividends of approximately US$22 billion to shareholders and delivered an internal rate of return (IRR) of approximately 39 per cent over the period.
In filings at the exchanges, the two companies said the proposed merger has the following benefits…
Complementary strengths: The new company will bring together Orascom Construction’s world-class execution capabilities — supported by a US$14 billion backlog, deep industry expertise in infrastructure, and multi-decade delivery of complex projects and concessions primarily in the United States, the GCC, Egypt, Europe and select emerging markets, and OCI’s institutional investment platform, transactional expertise, and proven track record of disciplined capital allocation.
Strong balance sheet: The new entity will unite and enhance the companies’ financial strength, consolidating substantial capital resources and funding capabilities. This strengthened platform will facilitate investment in large-scale infrastructure opportunities through multiple channels, including equity, credit, and operation and maintenance participation, while leveraging Orascom Construction’s established experience in the space.
Infrastructure track record: The company will provide a globally diversified platform from which to leverage Orascom Construction’s long-standing track record and access to an infrastructure opportunities pipeline spanning multiple industries, including digital, aviation, transportation, power and water, as well as leadership credentials in delivering landmark projects such as US data centres, and other notable industrial and infrastructure investments.