Fertiglobe expands Australian operations with Wengfu asset purchase

Fertiglobe has completed the acquisition of Wengfu Australia’s distribution assets, marking a key step in expanding its downstream operations and customer reach in Australia. Under the agreement, the assets will be operated by Fertiglobe Australia, a newly established wholly owned subsidiary. The acquired portfolio includes facilities across five ports and eight warehouses, distributing 700,000 to 800,000 tons of fertilizers annually to more than 200 customers, with the capacity to scale up to 1.1 million tons annually.

According to the company, the acquisition aligns with its “Grow 2030 Strategy,” which aims to strengthen proximity to customers and build a globally integrated nitrogen business. Fertiglobe expects the deal to generate incremental annual EBITDA of about $23 million by 2030. The purchase was financed through short-term facilities, expected to be repaid within four months, and will have minimal effect on the firm’s leverage and dividend capacity.

Before the transaction, Fertiglobe supplied roughly 600,000 tons of urea annually to Australia, where Wengfu had been its largest customer. The acquisition is expected to enhance Fertiglobe’s ability to meet growing local demand and improve distribution efficiency across the Asia-Pacific region.

Chief Executive Officer Ahmed El-Hoshy said the acquisition represents “a key step in advancing Fertiglobe’s ‘Grow 2030 Strategy’ and enhancing customer proximity,” adding that it will strengthen the company’s regional supply chain and diversify its product portfolio beyond nitrogen-based fertilizers.

Paul Osborne, recently appointed CEO of Fertiglobe Australia, said the integration “will unlock new opportunities for the business and benefit customers through access to a strong global ecosystem.”

The transaction was finalized after receiving all required regulatory and legal approvals.

Headquartered in Abu Dhabi, Fertiglobe operates production facilities in the UAE, Egypt and Algeria with a combined capacity of 6.6 million tons of urea and ammonia. It is listed on the Abu Dhabi Securities Exchange under the symbol FERTIGLB.