ADNOC Distribution said Tuesday it will acquire Shell's downstream business in South Africa in a deal valued at about $1 billion, marking its biggest international acquisition to date and strengthening its expansion across Africa.
A subsidiary of Abu Dhabi National Oil Company (ADNOC), ADNOC Distribution said in a statement that the agreement covers the acquisition of 100% of the share capital of Shell Downstream South Africa (SDSA), which operates about 580 company- and dealer-owned fuel stations, as well as its wholesale fuel, aviation and lubricants operations.
The transaction has an implied enterprise value of about $1 billion before adjustments for net debt and working capital and is expected to close in 2027, subject to regulatory approvals and other customary closing conditions.
“The proposed acquisition marks a major step towards ADNOC Distribution’s ambition to become a global mobility and convenience retailer, while advancing its fuel retail footprint in Africa,” the statement said.
The company said the deal is expected to increase earnings per share by around 6% in the first full year after completion and generate returns above its investment threshold.
Following completion of the acquisition, ADNOC Distribution plans to sell a 28% stake in the South African business to a local empowerment partner and an employee stock ownership plan, in line with the country's ownership framework.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
