- ADNOC Distribution will acquire Shell’s downstream fuels business in South Africa for US$1 billion.
- The acquisition includes 580 retail fuel stations, wholesale fuels, aviation fuel and lubricants operations, giving ADNOC about 10% of the country’s fuel retail market.
- The transaction is expected to close in 2027, subject to regulatory approvals, with a 28% stake to be sold to a local empowerment partner and an employee share ownership plan.
ADNOC Distribution, the retail arm of Abu Dhabi National Oil Company, has agreed to acquire Shell Plc’s downstream fuels business in South Africa for US$1 billion, equivalent to more than R16 billion.
The acquisition marks one of the largest transactions in South Africa’s downstream petroleum sector in recent years and brings to an end Shell’s 124 year history of directly operating fuel retail businesses in the country.
Under the agreement, ADNOC Distribution will acquire 100% of Shell Downstream South Africa, including a network of approximately 580 retail fuel service stations across the country.
The transaction also includes Shell’s wholesale fuels, aviation fuel and lubricants businesses, significantly expanding ADNOC Distribution’s presence in one of Africa’s largest fuel markets.
Following completion, ADNOC Distribution is expected to hold about 10% of South Africa’s retail fuel market. The retail service stations and lubricants business will continue to operate under the Shell brand.
The transaction remains subject to customary regulatory approvals and is expected to close in 2027.
As part of its post acquisition strategy, ADNOC Distribution intends to sell a 28% stake in the South African business to a local broad based black economic empowerment partner and an employee share ownership plan, supporting local ownership and participation in the business.
Author: Bryan Groenendaal
