The UAE's ADNOC Distribution Company, listed on the Abu Dhabi Securities Exchange, announced that it has entered into an agreement to acquire a 50 percent stake in Total Energy Egypt.
ADNOC Distribution clarified, in a press release, that it had signed an agreement with "Total Energy Marketing Afrique S.A.S." to acquire a 50 percent stake in Total Energy Marketing Egypt, with a value of approximately $186 million, in addition to an additional amount of up to $17.3 million, if certain conditions are met during the acquisition process.
Established in 1998, Total Energy Egypt has a diversified business portfolio that includes 240 retail fuel stations, over 100 retail stores, more than 250 oil change stations, car wash centers, wholesale fuel, jet fuel and lubricant operations.
Through the deal, ADNOC Distribution and Total Energies will develop the future growth opportunities for Total Energies Egypt by taking advantage of the available capabilities and exploring aspects of fruitful cooperation in the field of fuel and lubricant distribution and aviation business, enhanced by economic growth in the wake of the recovery from the repercussions of the COVID-19 pandemic..
The acquisition also includes the renovation of a number of service stations to comply with ADNOC's brand standards, as well as the establishment of selected new sites in the future bearing its brand, strengthening ADNOC's presence in the fast-growing Egyptian retail fuel distribution market.
The acquisition is expected to be completed during the first quarter of 2023, as the agreement is subject to the fulfilment of certain conditions, including approvals from the relevant regulatory authorities.
This acquisition is a new important step in the implementation of ADNOC Distribution's strategy to grow and expand internationally, after it opened its first station outside the UAE in Saudi Arabia in 2018, where the company currently operates 55 service stations across the Kingdom, as at the end of March 2022