UAE’s ADNOC Distribution said Wednesday that it has completed the acquisition of a 50% stake in TotalEnergies Marketing Egypt for approximately $186 million (EGP 3.5 billion), closing a landmark deal that marks the fuel and retail distributor’s official entry into the Egyptian market.
The partnership between ADNOC Distribution and TotalEnergies Egypt includes a diversified downstream portfolio of 240 fuel retail stations, over 100 convenience stores, 250+ lube changing stations and car washes as well as wholesale fuel, aviation fuel and lubricant operations.
ADNOC Distribution plans to bring its signature Oasis convenience store to Egypt in addition to introducing the digitally enabled ADNOC service station offering to customers in the market.
“Closing this transaction marks a significant milestone in ADNOC Distribution’s international growth journey, demonstrating our ability to expand in attractive international markets and reaffirming commitment to our Smart Growth Strategy,” Bader Saeed Al Lamki, CEO of ADNOC Distribution said in the statement.
The deal, which was first announced in July 2022, is expected to uplift ADNOC Distribution’s EBITDA from the first-year post-closing (c.+6% on a fully consolidated basis). Founded in 1998, TotalEnergies’ Egyptian business has 240 fuel retail stations as well as wholesale fuel aviation fuel and lubricants operations.
Global expansion
ADNOC Distribution’s expansion into Egypt marks another important milestone in the company’s broader strategy to expand its business into attractive international growth markets.
The energy firm, which has 502 retail fuel stations and 362 convenience stores in the UAE as of 31 December 2022, has been expanding its portfolio regionally. It opened its first fuel stations outside the UAE in Saudi Arabia in 2018 and has 66 operational stations across the kingdom as of the end of December.
With a market capitalisation of $15.1 billion (AED 55.6 billion) as of 15 February 2023, ADNOC Distribution reported a full-year net profit of $749 million (AED 2.75 billion) in 2022 and an annual EBITDA of $958 million (AED 3.52 billion).
