The UAE’s biggest petrol distributor Adnoc Distribution is acquiring a 50 percent stake in the Egyptian unity of TotalEnergies, as it eyes further regional expansion.
The purchase deal could amount to $186 million, according to a bourse filing, with an additional earn-out of up to $17.3 million “if certain conditions are satisfied.”
TotalEnergies Egypt is a top fuel retail operator in the North African nation, operating a portfolio of 240 refueling stations, over 100 convenience stores, and 250+ lube changing stations. The company is also involved in wholesale fuel, aviation fuel, and lubricant operation businesses.
“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,” Adnoc Distribution chief Bader Saeed Al Lamki said.
Expected to be completed by the first quarter of next year, the transaction is the biggest investment of the Abu Dhabi firm to date.
“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,” Adnoc group chief Sultan Ahmed Al Jaber explained.
Several service stations in Egypt will be refurbished to full Adnoc branding as part of the deal.
The move follows the Adnoc Distribution’s earlier foray into other Gulf markets, including Saudi Arabia, where it operates around 55 stations across the Kingdom.
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