The acquisition is expected to be completed in Q1 2023 pending satisfaction of certain conditions, including customary regulatory approvals.
ADNOC Distribution has entered into an agreement with TotalEnergies Marketing Afrique to acquire a 50 per cent stake in TotalEnergies Marketing Egypt for approximately $186m, with an additional earn-out of up to $17.3m (if certain conditions are met).
TotalEnergies Egypt is among the top four fuel retail operators in Egypt.
The acquisition is an important development that aims to boost ADNOC Distribution’s expansion plans.
The partnership with TotalEnergies, a 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, 250 plus lube changing stations, and car washes, as well as wholesale fuel, aviation fuel, and lubricant operations.
The refurbishment of several service stations to full ADNOC branding is part of the deal, with certain future sites being constructed under the ADNOC brand.
The acquisition is expected to be completed in Q1 2023 pending the fulfillment of certain conditions, including customary regulatory approvals.
Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, MD and group CEO of ADNOC, and chairman of ADNOC Distribution 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.”
Bader Saeed Al Lamki, CEO of ADNOC Distribution, said, “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.
Thierry Pflimlin, president of 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.”
In recent news, ADNOC Distribution recorded Dhs671m in net profit for Q1 2022, posting a 6.3 per cent year-on-year increase.