RIYADH: UAE’s ADNOC Logistics and Services has boosted its global position by acquiring an 80 percent stake in Navig8 TopCo. Holdings Inc. for $1.04 billion, strengthening its status as a prominent player in energy maritime transportation. 

The transaction includes a contractual commitment to acquire the remaining 20 percent by mid-2027, positioning ADNOC L&S for expanded global operations and increased shareholder value. 

Navig8, a prominent international shipping pool operator and commercial management company, brings a modern-owned fleet of 32 tankers and an established presence in 15 cities across five continents. 

The firm has investments in technical management services, is a marine fuels provider operating in over 1,000 ports globally, and has additional ventures within the marine sector. 

“The completion of this landmark acquisition is a significant milestone in our transformational growth strategy,” said Abdulkareem Al-Masabi, CEO of ADNOC L&S. 

“By integrating Navig8’s extensive fleet and global presence, we can enhance our service offerings, generating substantial value for customers and shareholders. This strategic move unlocks new opportunities for commercial growth and expansion into new markets, reinforcing our position as a leading global energy maritime logistics company,” Al-Masabi added.

The acquisition aligns with ADNOC L&S’ growth strategy, complementing its integration with Zakher Marine International in 2022 and reinforcing its ambition to expand its global reach and service portfolio. 

ZMI, an Abu Dhabi-based owner and operator of offshore support vessels, brought with it the world’s largest fleet of self-propelled jack-up barges. 

ZMI’s acquisition expanded ADNOC L&S’s fleet to over 300 vessels, reinforcing its position as the region’s largest integrated logistics provider and enabling the company to offer its customers a broader range of services. 

ADNOC L&S, a subsidiary of Abu Dhabi National Oil Co., will benefit from Navig8’s acquisition through expanded services, including commercial pooling, bunkering, technical management, and environmental, social, and governance-focused industrial and digital solutions. 

The acquisition is structured to ensure economic ownership of Navig8 starting from Jan. 1, 2024. 

The remaining 20 percent will be acquired in 2027 for deferred consideration ranging from $335 million to $450 million, depending on earnings before interest, taxes, depreciation, and amortization performance during the interim. 

Nicolas Busch, CEO of Navig8, expressed enthusiasm for the deal, saying: “We are excited to join forces with ADNOC L&S and the wider ADNOC Group. This achievement highlights the exceptional efforts of the Navig8 team over the past two decades, setting the stage for this next phase.” 

The acquisition is expected to deliver immediate financial benefits, with ADNOC L&S projecting a 20 percent increase in earnings per share by this year compared to the previous year. 

The company’s share price saw a 5.23 percent increase as of Jan. 8, 1:00 p.m. Saudi time.

It anticipates annual synergies of at least $20 million by 2026, underscoring the value-accretive nature of the transaction. 

RIYADH: Saudi Arabia saw a 17.4 percent surge in mergers and acquisitions approvals in 2024, reflecting the Kingdom’s efforts to strengthen its competitive business environment. 

The General Authority for Competition approved 202 economic concentration requests — the highest number in its history — with 10 additional applications still under review, according to its annual report. 

Economic concentration approvals are required for mergers and acquisitions to ensure they do not create monopolies or disrupt market competition. 

The surge in approvals aligns with GAC’s goal of implementing competition-enhancing policies, combating illegal monopolistic practices, and improving market performance to boost consumer and business confidence, attract investment, and promote sustainable development.

Saudi Arabia’s surging mergers and acquisitions market comes against a global backdrop of decline in the industry, with a GlobalData report released in December showing worldwide deal volume dropped 8.7 percent year-on-year in the first 11 months of 2024 — with the Middle East and Africa region seeing a relatively modest 5 percent decline. 

Acquisition deals dominated approvals in the Kingdom at 81 percent, followed by joint ventures at 15 percent, and mergers at just 2 percent, the report showed. 

The manufacturing sector led in activity, accounting for 67 of the approved requests, followed by the information and communications sector with 39, and wholesale and retail trade, along with motor vehicle and motorcycle repairs, with 22. 

Foreign companies also showed significant interest in the manufacturing sector, which claimed 28 percent of their concentration requests, followed by information and communications at 17 percent, and wholesale and retail trade at 15 percent. 

GAC noted a growing diversity in market activity, with requests received in emerging sectors like off-road tires, nicotine replacement therapy manufacturing, and industrial protective coatings. 

The Kingdom led the Middle East in mergers and acquisitions in the chemicals sector during the first quarter of 2024, closing deals worth $500 million. 

Additionally, the authority approved four new car agency registrations during the year and analyzed 53 percent of concentration requests based on horizontal relationships between entities operating within the same sector. Vertical and cluster relationships accounted for 16 percent and 31 percent of reviews, respectively. 

The surge in approvals aligns with Vision 2030, which aims to create a business-friendly environment that attracts foreign investment and supports sectoral growth. 

As Saudi Arabia strengthens its regulatory and economic frameworks, the surge in merger approvals reflects its ambition to establish itself as a regional hub for business and investment.