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.

 ?? ??

Newspapers in English

Newspapers from United Arab Emirates