In a move poised to reshape the global infrastructure landscape, OCI Global and Orascom Construction have announced their pursuit of a strategic combination.
OCI Global and Orascom Construction PLC revealed that they are actively exploring a potential merger that would culminate in the creation of a powerful, globally-reaching infrastructure and investment platform anchored in Abu Dhabi. This strategic combination is designed to leverage the distinct and complementary capabilities of each company, promising to unlock a new phase of growth and value creation.
The proposed merger would unite Orascom Construction’s formidable project execution capabilities with OCI’s institutional investment platform and capital allocation expertise. Orascom Construction brings to the table a robust USD 14 billion backlog, extensive experience in infrastructure, and a multi-decade track record of delivering complex projects and concessions across the United States, the GCC, Egypt, Europe, and various emerging markets. This would be combined with OCI’s proven transactional acumen and disciplined capital management.
The new entity would offer a globally diversified platform from which to leverage Orascom Construction’s long-standing track record in infrastructure. The combined company would gain access to a broad pipeline of infrastructure opportunities spanning multiple sectors, including digital infrastructure, aviation, transportation, power, and water. This includes leveraging expertise from delivering landmark projects like U.S. data centers and other notable industrial and infrastructure investments.
Both companies have a rich history of creating value across various economic cycles and geographies. Orascom Construction, founded by Onsi Sawiris in 1950, has established itself as a leading global Engineering, Procurement and Construction (EPC) player, consistently ranked among the world’s top 30 international contractors. Similarly, since 1999, OCI has successfully developed a globally leading cement, nitrogen, and methanol business, pioneering innovations such as the world’s first large-scale greenfield blue ammonia plant in the United States.
The potential for this combination is underscored by the fact that the periods of greatest value creation for both companies have historically occurred when their businesses were combined, first in cement and later in natural gas-based industries.
The proposed structure involves Orascom Construction acting as the acquiring entity, which would be an ADGM-incorporated and ADX-primary listed company. OCI shareholders would receive new Orascom Construction shares at a ratio to be determined after due diligence and relative valuation. OCI would subsequently be liquidated and delisted from Euronext Amsterdam. This potential transaction is subject to the agreement and approval of the boards of both companies, as well as the endorsement of shareholders and relevant regulatory bodies.
