ADNOC Distribution acquires 50% of Total Energy Egypt’s activities

ADNOC Distribution acquires 50% of Total Energy Egypt’s activities
ADNOC Distribution, the UAE company, announced the conclusion of an agreement to acquire a 50% 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.
Established in 1998, Total Energy Egypt is one of the four largest retail fuel companies in Egypt, and this acquisition is an important step in ADNOC Distribution’s path and expansion plans.
The partnership with Total Energy includes a diversified business portfolio, which includes 240 retail fuel stations, more than 100 retail stores, more than 250 oil change stations, car wash centers, wholesale fuel, jet fuel and lubricant operations.
The acquisition also includes the renovation of a number of service stations to comply with ADNOC’s brand standards, in addition to the establishment of selected new sites in the future bearing its brand, which enhances ADNOC’s presence in the promising Egyptian fuel distribution retail market.
The acquisition is expected to be completed during the first quarter of 2023, as the agreement is subject to approvals from the relevant regulatory authorities.
For his part, Badr Saeed Al Lamki, CEO of ADNOC Distribution, said: “The retail fuel distribution market in Egypt is a promising market full of future growth opportunities, given its growing population, which includes a high percentage of young people, in addition to its implementation of a series of economic reforms. Egypt recently witnessed a growth in GDP with positive future expectations.
He added, “The acquisition is expected to contribute to adding profits to ADNOC Distribution, starting from the first year after its completion, and we look forward to providing the best and finest services to customers in Egypt, and strengthening cooperation with Total Energies Egypt to accelerate our expansion in Egypt and other countries.”

This acquisition is a new important step in implementing ADNOC Distribution’s strategy to grow and expand internationally, after opening its first station outside the UAE in Saudi Arabia in 2018, where the company currently operates 55 service stations across the Kingdom.