Fertiglobe has successfully finalized the purchase of Wengfu Australia’s distribution network, enhancing its operations in the Asia-Pacific region as part of its “Grow 2030 Strategy.”
This new distribution network includes five ports and eight warehouses, facilitating the distribution of between 700,000 to 800,000 tonnes of fertilizers each year to over 200 clients, with the potential to increase capacity to 1.1 million tonnes annually. Fertiglobe Australia, a newly created subsidiary, will manage these assets under the Fertiglobe brand.
The acquisition was financed through short-term loans anticipated to be repaid within four months and is expected to contribute approximately $23 million in additional annual EBITDA by 2030.
Fertiglobe indicated that this acquisition will not affect its ability to distribute dividends and will have only a minimal effect on the net debt to adjusted EBITDA ratio, which was recorded at 1.2 times as of June 2025.
Before this deal, Fertiglobe supplied around 600,000 tonnes of urea to Australia, with Wengfu being its primary customer there.
Fertiglobe highlights growth potential from the acquisition
The company emphasized that this acquisition presents a chance to increase volumes, broaden its market presence, and enhance its supply chain.
“We are delighted to have completed the acquisition of Wengfu Australia’s distribution assets, which marks a significant milestone in implementing Fertiglobe’s ‘Grow 2030 Strategy’ and reinforces our commitment to improving customer proximity,” stated CEO Ahmed El-Hoshy.
“The Fertiglobe Australia platform throughout the Asia-Pacific region opens up new avenues, expands our customer network, and boosts the efficiency of our supply chain.”
Paul Osborne, the newly appointed CEO of Fertiglobe Australia, expressed that the acquisition would “create new possibilities for our business and provide our customers with enhanced access to a robust global ecosystem.”
This acquisition came after receiving all necessary regulatory and legal approvals.
Based in Abu Dhabi and supported by ADNOC and XRG, Fertiglobe stands as the largest seaborne exporter of combined urea and ammonia, boasting an annual production capability of 6.6 million tonnes of urea and merchant ammonia from its facilities in the UAE, Egypt, and Algeria.
Wengfu Australia was established in 2009 and is part of the Guizhou Phosphate & Chemical Group, recognized as the third-largest producer of phosphate fertilizers and chemicals globally.