ADNOC Distribution to Acquire Shell Downstream South Africa in $1 Billion Deal
UAE-based ADNOC Distribution, a leading fuel and retail distributor listed on the Abu Dhabi Securities Exchange (ADX), has announced the signing of a definitive agreement with Shell South Africa Holding to acquire 100% of the share capital in Shell Downstream South Africa.
The proposed acquisition is valued at an estimated $1 billion for 100% of the equity, prior to adjustments for net debt and working capital. The transaction is expected to close in 2027, subject to customary regulatory approvals and closing conditions.
Following the completion of the deal, a 28% stake in Shell Downstream South Africa is expected to be sold to a local partner to comply with South Africa's comprehensive economic empowerment legislation. Furthermore, ADNOC Distribution will enter into a long-term brand licensing agreement, allowing it to continue operating the service stations and lubricants business under the established "Shell" brand.
Maintaining a Trusted Customer Experience
Upon finalizing the transaction, customers will continue to enjoy the preferred and trusted experience they are accustomed to, now operating under the strategic oversight of ADNOC Distribution.
Strategic International Expansion
Eng. Bader Saeed Al Lamki, CEO of ADNOC Distribution, commented on the agreement: "This proposed acquisition marks a significant milestone in ADNOC Distribution’s international expansion strategy. It underscores our confidence in South Africa as a highly promising market characterized by a robust regulatory framework in the fuel retail sector."
He further added that Shell Downstream South Africa boasts strong financial health and a deeply rooted position in the local economy, with values and objectives that closely align with ADNOC's strategic vision.
"By welcoming them into the ADNOC Distribution family, we aim to accelerate our global footprint and diversify our operational platforms. This will enhance our capacity to deliver sustainable, long-term value to our shareholders, partners, and the communities this company has served for decades," Al Lamki concluded.