Refining & Petrochemicals Middle East
ADNOC Distribution to acquire 50% stake in Totalenergies’ fuel retail business in Egypt
ADNOC Distribution, the UAE’S largest fuel and retail distributor, has signed an agreement with Totalenergies Marketing Afrique SAS to acquire a 50% stake in Totalenergies Marketing Egypt LLC for approximately $186 million, with an additional earn-out of up to $17.3 million subject to certain conditions.
“The acquisition marks another important milestone in the delivery of ADNOC Distribution’s expansion plans,” ADNOC wrote in a statement. Explaining the terms of the acquisition, the company said the partnership with Totalenergies, a leading global multi-energy company with a strong brand and successful track record in Egypt, includes a diversified portfolio comprising 240 fuel retail stations, over 100 convenience stores, and over 250 lube changing stations along with wholesale fuel, aviation fuel, and lubricant operations.
“Through this deal, ADNOC Distribution and Totalenergies will develop future growth opportunities of Totalenergies Egypt through unlocking value potential and exploring beneficial synergies in fuel distribution, lubricants and aviation businesses driven by economic growth and post COVID recovery,” the UAE fuel retailer said.
Following the acquisition, they will refurbish several stations to have full ADNOC branding, with certain future sites being constructed under the ADNOC brand, offering a robust foothold in a fast-growing fuel retail market in Egypt, the Uae-based firm said.“the acquisition is expected to be completed in Q1 2023 pending satisfaction of certain conditions, including customary regulatory approvals,” the statement noted.
Commenting on the development, Dr Sultan Ahmed Al Jaber, UAE’S minister of industry and advanced technology, managing director and group CEO of ADNOC, said, “This acquisition marks a significant milestone in ADNOC Distribution’s international growth story.” He said the acquisition is also well aligned with the Industrial Partnership for Sustainable Economic Growth between the UAE, Bahrain, Egypt, and Jordan.