ADNOC Distribution, UAE’s fuel retailer and distributer, announces acquisition of 50% of TotalEnergies Egypt in a $203m investment.
The deal is essentially valued at $186m, with an additional earn-out of up to $17.3 million if certain conditions are satisfied, according to an ADNOC press release.
This acquisition comes in line with ADNOC Distribution’s strategy of international expansion, following opening its first stations outside the UAE in Saudi Arabia in 2018, as well as exporting to 20 countries globally.
“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,” said His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and Group CEO of ADNOC, and Chairman of ADNOC Distribution.
As part of the agreement, which should be completed in the first quarter of 2023, several TotalEnergies stations in Egypt will be witnessing “refurbishment to full ADNOC branding, with certain future sites being constructed under the ADNOC brand”, ADNOC’s press release read.
ADNOC Distribution and TotalEnergies will also start exploring potential collaborations in their shared fields of fuel distribution, lubricants and aviation businesses, putting into consideration the companies’ post-COVID19 recovery.
“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,” Bader Saeed Al Lamki, CEO of ADNOC Distribution, commented.
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