ADNOC mulls Gunvor swoop

Abu Dhabi National Oil Company (ADNOC) is reportedly looking to buy all or part of the Swiss-based commodity trading giant Gunvor.

ADNOC has been expanding its trading unit in recent years and has also bolstered its shipping and maritime logistics arm Adnoc L&S, to take advantage of its position as a major producer of oil, natural gas and products.

Founded in 2000, Gunvor trades more than 3m barrels of crude oil and products daily in more than 100 countries and has strategic investments in industrial infrastructure including refineries, pipelines, storage and terminals that complement its core trading activity. The company’s equity value grew to just over $4bn in the first six months of 2022.

The deal, which could go from merging trading businesses to a complete takeover, would significantly increase the UAE’s reach in global commodity markets and add logistics strength through Gunvor’s subsidiary Clearlake Shipping, which charters an average of 1,500 vessels annually and also holds ownership stakes in the vessels it charters through ventures for newly built product tankers.

The talks between the UAE state oil producer and the Torbjörn Törnqvist-controlled company are in the early stages, and could take months and may ultimately not result in a deal, Bloomberg reported, citing sources close to the matter.

Törnqvist is the co-founder and majority owner of Gunvor, with just shy of a 90% stake in the company. He was earlier in talks with rival houses about selling a stake in the company, and in 2019 his discussions with Algeria’s oil and gas producer, Sonatrach, fell through amid political unrest in the country.