Abu Dhabi – Mubasher: Abu Dhabi National Oil Company for Distribution (ADNOC Distribution) has entered into an agreement with TotalEnergies Marketing Afrique to acquire a 50% stake in TotalEnergies Marketing Egypt (TotalEnergies Egypt).
The UAE-based company will pay nearly $186 million, in addition to an earn-out of up to $17.30 million if certain conditions are fulfilled, according to a press release.
In line with its expansion plans, ADNOC Distribution aims to create future growth opportunities for TotalEnergies Egypt by exploring beneficial synergies in fuel distribution, lubricants, and aviation businesses, driven by economic growth and post-COVID recovery.
The partnership with TotalEnergies, a multi-energy company, includes a diversified portfolio comprising 240 fuel retail stations, over 100 convenience stores, and more than 25 lube changing stations. It also includes car washes, wholesale fuel, aviation fuel, and lubricant operations.
Under the acquisition, different service stations will be renewed and certain future sites will be constructed under the ADNOC brand. Subject to necessary conditions and regulatory approvals, the transaction process is expected to be completed during the first quarter (Q1) of 2023.
UAE’s Minister of Industry and Advanced Technology and the Chairman of ADNOC Distribution, Sultan Ahmed Al Jaber, said: “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."
CEO of ADNOC Distribution, Bader Saeed Al Lamki, noted: “The Acquisition will be earnings accretive to ADNOC Distribution from the first year post closing.”
During the first three months (3M) of 2022, ADNOC Distribution reported net profits worth AED 670.68 million, an annual surge of 6.30% from AED 630.73 million.
