ADNOC to acquire 50% stake in TotalEnergies fuel retail business in Egypt
The acquisition will accelerate the company’s international growth following its regional expansion in the Kingdom of Saudi Arabia.
Adnoc Distribution announced it has entered into an agreement with TotalEnergies Marketing Afrique SAS to acquire a 50% stake in TotalEnergies Marketing Egypt for approximately $186 million. The acquisition includes a 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, both companies will develop future growth opportunities of the brand through unlocking value potential and exploring beneficial synergies in fuel distribution, lubricants and aviation businesses driven by economic growth and post COVID recovery. TotalEnergies Egypt was established in 1998 and is among the top four fuel retail operators in the country.
“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,” said Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and Group CEO of Adnoc, and Chairman of Adnoc Distribution.
The transaction, which is expected to be completed by the first quarter of 2023, also involves the rebranding of several retail locations, with certain future sites set to be built under the new brand.
“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,” added Thierry Pflimlin, President of Marketing & Services at TotalEnergies.
