According to unnamed sources cited by Bloomberg and Reuters, the state-run oil company of the United Arab Emirates is considering a full or partial acquisition of the commodity trading firm Gunvor Group.

According to Bloomberg, early-stage negotiations regarding buying the commodities firm have already taken place between Abu Dhabi National Oil Company (ADNOC) and Gunvor to combine Adnoc’s trading arm with Gunvor.

Reuters also quotes an unnamed person who claims that discussions have taken place regarding the purchase of Gunvor Group or a portion of the trading firm.

ADNOC and Gunvor have not released any information regarding reported preliminary discussions, and sources quoted by Bloomberg and Reuters warn that a deal of this nature would take months to complete. Although Bloomberg reports that the privately held Gunvor valued its equity at over $4 billion as of late June and recorded over $840 million in H2 2022 profits, the company’s exact market valuation is unknown.

Before the start of the Russian war with Ukraine, Bloomberg reported that the wealth of Torbjorn Tornqvist, co-founder and CEO of Gunvor, had increased to $3.7 billion. Since the beginning of 2021, Tornqvist’s net worth has nearly doubled.

Gunvor announced a $726 million net profit for 2021 in April, mostly as a result of its trading activities for liquefied natural gas (LNG).

ABOUT GUNVOR GROUP LTD.

Gunvor Group Ltd. is a worldwide commodity trading firm is registered in Cyprus and has its primary trading office in Geneva, Switzerland. Along with representative offices spread out all over the world, Gunvor also maintains trade operations in Singapore, the Bahamas, and Dubai.