Adnoc Distribution, one of the leading retail and fuel distributors in the United Arab Emirates has announced taking over a 50% stake in TotalEnergies Marketing Egypt for nearly $186 million as part of its international expansion plans.
As per the agreement inked with TotalEnergies Marketing Afrique, Adnoc also has the provision for additional earn-out of up to $17.3 million if some specific conditions are catered to.
Reportedly, the deal marks one of the largest investments made by Adnoc Distribution till date where its shares are traded.
Adnoc Distribution stated that the deal will pave way for further growth opportunities of TotalEnergies Egypt by unveiling value potential and exploring beneficial synergies in lubricants, fuel distribution, and aviation businesses led by post Covid recovery and economic growth.
According to reports, the acquisition is anticipated to be completed by the first quarter of 2023 subject to regulatory approvals.
Dr. Sultan Al Jaber, Group Chief Executive and Managing Director at Adnoc, Minister of Advanced and Industry Technology and Chairman, Adnoc Distribution stated that the acquisition marks a major milestone in Adnoc Distribution’s international growth story.
Dr. Sultan mentioned that Egypt is the Arab world’s most populated nation, and the firm is looking forward to entering such a dynamic market.
Not to mention, the acquisition is also well-aligned with the Industrial Partnership for Sustainable Economic Growth between Bahrain, United Arab Emirates, Jordan, and Egypt. It will also leverage the strengths of both Egypt and UAE to amplify the growth in related markets.
Crucial to note that Adnoc Distribution reportedly has 350 convenience stores and 464 fuel stations in the United Arab Emirates on March 31st and ever since has been expanding its portfolio.
For the record, TotalEnergies Egypt, set up in 1998, is one of the best four fuel retail operators throughout the country.