An additional payment of up to $17.3 million could be made if certain conditions are met, said ADNOC Distribution
The UAE’S largest fuel and retail distributor Abu Dhabi National Oil Co. (ADNOC) Distribution has entered into an agreement to acquire a 50% stake in Total Energy’s Egyptian subsidiary.
According to a release by ADNOC Distribution, the company signed an agreement with "Total Energy Marketing Afrique S.A.S." to acquire a 50% stake in Total Energy Egypt for an approximate $186 million.
An additional payment of up to $17.3 million could be made if certain conditions are met, said ADNOC Distribution.
“Through this deal, ADNOC Distribution and Total Energies will develop the future growth opportunities of Total Energies Egypt through unlocking value potential and exploring beneficial synergies in fuel distribution, lubricants and aviation businesses driven by economic growth and post COVID recovery,” said ADNOC.
The acquisition is still subject to relevant regulatory approvals and is expected to be completed in the first quarter of 2023.
The deal includes the rebranding and renovation of Total Energies Egypt’s service stations to fit with the ADNOC brand, with future stations and sites to carry the ADNOC brand.
Currently Total Energies Egypt has around 240 fuel retail stations and operations in wholesale fuel, aviation fuel, and lubricant, as well as 100 convenience stores.
With the acquisition, ADNOC Distribution aims to grow and expand its footprint internationally. The company opened its first station outside the UAE in Saudi Arabia in 2018.
Last week, the two companies signed an energy deal to develop oil and gas projects in the UAE and potential commercial carbon capture, utilization, and storage (CCUS) project.