The deal, signed with TotalEnergies Marketing Afrique SAS, is expected to be completed in the first quarter of 2023 pending the meeting of certain conditions, including customary regulatory approvals, according to ADNOC.
Established in 1998, TotalEnergies Egypt is among the top four fuel retail operators in Egypt.
ADNOC said that the acquisition marks another important milestone in the company’s expansion plans, adding that this agreement includes a diversified portfolio comprising 240 fuel retail stations, over 100 convenience stores, over 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 the 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,” said ADNOC.
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.
“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 Sultan Ahmed Al Jaber, the UAE’s Minister of Industry and Advanced Technology, Managing Director and Group CEO of ADNOC, and Chairman of ADNOC Distribution.
Bader Saeed Al Lamki, CEO of ADNOC Distribution, said that Egypt’s fuel retail market is highly attractive with exciting potential for future growth.
“Due to its young and expanding population, alongside a series of progressive economic reforms, Egypt has recorded positive GDP growth with a strong outlook. This acquisition by ADNOC Distribution reaffirms our commitment to expanding our business in attractive international growth markets. It is a testament to our ability to leverage our experience in both fuel and non-fuel retail, to deploy cash to accelerate our international expansion, and to realize natural business synergies and partnership opportunities that allow us to quickly and efficiently enter new and dynamic markets,” Al Lamki added.
ADNOC opened its first stations outside the UAE in Saudi Arabia in 2018, with 55 stations operating across the kingdom as at the end of March 2022.
Short link: