ADNOC Distribution has reached an agreement with TotalEnergies Marketing Africa to acquire a 50% stake in TotalEnergies Marketing Egypt for approximately $186 million, with an earn-out of up to $17.3 million (if certain conditions are met).
TotalEnergies Egypt is one of the four main fuel distribution operators in Egypt.
The acquisition is an important development which 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 diverse portfolio including 240 service stations, over 100 convenience stores, over 250 lubricant change stations and washers. -cars, as well as wholesale of fuel, aviation fuel and lubricants.
The renovation of several service stations under the full ADNOC brand is part of the agreement, with some future sites being built under the ADNOC brand.
The acquisition is expected to close in the first quarter of 2023 subject to satisfaction of certain conditions, including customary regulatory approvals.
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technologies, Managing Director and CEO of ADNOC Group, and Chairman of ADNOC Distribution, said: “This acquisition marks an important milestone in the history of international growth. of ADNOC Distribution. Egypt is the most populous country in the Arab world 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 the UAE and Egypt to drive growth across related markets.”
Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: “The Egyptian fuel retail market is very attractive and has exciting future growth potential. Due to its young and expanding population, alongside a series of gradual economic reforms, Egypt has recorded positive GDP growth with good prospects. “This acquisition by ADNOC Distribution reaffirms our desire to expand our activities in attractive international growth markets.
Thierry Pflimlin, President of Marketing Services at TotalEnergies, said: “TotalEnergies is delighted to partner with ADNOC Distribution in Egypt. The rich experience of the leader in fuel distribution in the UAE will bring substantial added value to TotalEnergies Egypt.
In recent news, ADNOC Distribution recorded a net profit of Dhs 671 million for the first quarter of 2022, posting a 6.3% year-on-year increase.
Read: ADNOC Distribution of Abu Dhabi announces a net profit of 671 million Dhs for the first quarter of 2022