Adnoc Distribution to Buy 50% Stake in TotalEnergies Egypt

Adnoc Distribution to Buy 50% Stake in TotalEnergies Egypt

ADNOC Distribution, the UAE’s largest fuel and retail distributor, has entered into an agreement with TotalEnergies Marketing Afrique SAS to acquire a 50% stake in TotalEnergies Marketing Egypt for approximately $186 million, with an additional earn-out of up to $17.3 million if certain conditions are satisfied, the company said in a statement.

According to the statement, the overall deal marks the Abu Dhabi company’s largest investment to date. “Through this deal, ADNOC Distribution and TotalEnergies will develop future growth opportunities of TotalEnergies Egypt through unlocking value potential and exploring beneficial synergies in fuel
distribution, lubricants and aviation businesses driven by economic growth and post COVID recovery,” the company said.
The Acquisition will also see the refurbishment of several service stations to full ADNOC branding, with certain future sites being constructed under the ADNOC brand, offering a robust foothold in a fastgrowing fuel retail market in Egypt.
The Acquisition is expected to be completed in Q1 2023 pending satisfaction of certain conditions, including customary regulatory approvals.

Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and Group CEO of ADNOC, and Chairman of ADNOC Distribution said: “This Acquisition marks a significant milestone in ADNOC Distribution’s international growth story. Egypt is the Arab world’s most
populous country and we look forward to entering such a dynamic market.

Bader Saeed Al Lamki, CEO of ADNOC Distribution, said, “Egypt’s fuel retail market is highly attractive with exciting potential for future growth. Due to its young and expanding population, alongside a series of progressive economic reforms, Egypt has recorded positive GDP growth with a strong outlook.

For his part, Thierry Pflimlin, President Marketing & Services at TotalEnergies, said, “TotalEnergies is pleased to be joining forces with ADNOC Distribution in Egypt. The rich experience of the leading fuel  distributor in the UAE will bring substantial added value to TotalEnergies Egypt.”

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