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ADNOC Distribution to Acquire Shell South Africa for $1 Billion

Abu Dhabi-based ADNOC Distribution has signed a definitive agreement to acquire 100% of Shell Downstream South Africa, a deal valued at approximately $1 billion. The move marks a significant expansion for the UAE retailer, adding 580 fuel stations to its international network as it targets growth across the African continent.

ADNOC Distribution to Acquire Shell South Africa for $1 Billion
Photo: Bio & News

The acquisition encompasses Shell’s entire downstream footprint in the country, including aviation, lubricants, and commercial fuel operations. Under the terms of the agreement, ADNOC Distribution will retain the Shell brand at retail sites through a long-term licensing arrangement, ensuring continuity for local customers. The company expects the transaction to close in 2027, pending regulatory approvals and customary closing conditions.

Financial projections indicate the purchase will be value-accretive, boosting ADNOC Distribution’s earnings per share by 6% in the first full year post-completion. To align with local economic requirements, the firm intends to sell a 28% stake in the acquired business to a local empowerment partner and an employee stock option plan. CEO Bader Saeed Al Lamki described the deal as a milestone in the company’s international growth strategy, citing South Africa's robust regulatory framework and infrastructure investment as key drivers for the investment.

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