ADNOC L&S buying Navig8 in billion dollar deal

ADNOC L&S will acquire 80% of Navig8 for $1.03 billion with a view to buying the remaining 20% of the company in 2027 for $335 – 450 million in 2027.

The acquisition of Navig8 brings with it a major presence in tanker pooling, an owned fleet of 30 tankers, and operations in 15 cities across five continents.

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “This value accretive acquisition marks another major milestone as we deliver on our transformational growth strategy. The addition of Navig8’s presence in 15 international cities, fleet of tankers and world-class services will expand our geographical footprint and service offering, cementing our position as a leading global energy maritime logistics and services company.”

ADNOC L&S is targetting over $100 million in annual cost savings through optimising technical management costs and bunker spend.

It plans to maintain the Navig8 brand and the current management team running the business on a day-to-day basis.

Nicolas Busch, CEO of Navig8, said: “The opportunity to work collaboratively with ADNOC L&S and the wider ADNOC Group brings together their extensive knowledge of energy markets with Navig8’s unique presence in the maritime sector. This will allow us to enhance the service and value we deliver to both our customers and the Navig8 group.”

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ADNOC L&S expects immediate returns for its shareholders from the acquisition with the first full year of investment expected to boost its earnings per share by at least 20%. Navig8 reported an EBITDA in over $400 million in 2023 equivalent to 44% of ADNOC L&S’ earnings.

The acquisition forms part of a wider growth strategy by the Abu Dhabi company which is committed to invest in excess of $5 billion in energy-related maritime logistics over the medium term, to meet growing demand in the UAE and beyond. 

“At the time of our public listing one year ago, we made a commitment to our shareholders and the market to accelerate our strategic investments over the medium term. We are progressing towards achieving our strategic growth investment target with major expansions of our fleet and global footprint. The acquisition of Navig8, combined with our recent shipbuilding activities, demonstrates that ADNOC L&S is delivering on our strategy to maximize shareholder value,” Captain Al Masabi said.