ADNOC Distribution to Acquire 50% Stake in TotalEnergies Egypt
ADNOC Distribution has signed an agreement to acquire a stake in a significant portfolio, which includes 240 fuel retail stations, wholesale fuel, aviation fuel and lubricants operations.
The acquisition will accelerate ADNOC Distribution’s international growth following regional expansion in the Kingdom of Saudi Arabia in 2018
ADNOC Distribution has entered into an agreement with TotalEnergies Marketing Afrique SAS to acquire a 50% stake in TotalEnergies Egypt for approximately $186 million, with an additional earn-out of up to $17.3 million (if certain conditions are satisfied) (the Acquisition).
Established in 1998, TotalEnergies Egypt is among the top four fuel retail operators in Egypt. The Acquisition marks another important milestone in delivery of ADNOC Distribution’s expansion plans.
The partnership with TotalEnergies includes a diversified portfolio comprising 240 fuel retail stations, 100+ convenience stores, 250+ lube changing stations, and car washes, as well as wholesale fuel, aviation fuel, and lubricant operations.
Through this deal, ADNOC Distribution and TotalEnergies will develop future growth opportunities of TotalEnergies Egypt by exploring beneficial synergies in fuel distribution, lubricants and aviation businesses driven by economic growth and post COVID recovery.
The Acquisition will also see the refurbishment of several service stations to 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 Acquisition is expected to be completed in Q1 2023 pending satisfaction of certain conditions, including customary regulatory approvals.
His Excellency Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Group CEO of ADNOC said: “This Acquisition marks a significant milestone in ADNOC Distribution’s international growth story.
"Egypt is the Arab world’s most populous country and we look forward to entering such a dynamic market.
"The Acquisition is also well aligned with the Industrial Partnership for Sustainable Economic Growth between the UAE, Bahrain, Egypt, and Jordan and will leverage the strengths of both the UAE and Egypt to boost growth in the related markets."
Thierry Pflimlin, President Marketing & Services at TotalEnergies, said: “TotalEnergies is pleased to be joining forces with ADNOC Distribution in Egypt. The rich experience of the leading fuel distributor in the UAE will bring substantial added value to TotalEnergies Egypt.
"We look forward to collaborating with ADNOC Distribution in its international growth strategy.”