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Adnoc Distribution, the largest fuel distributor in the UAE, has reached an agreement with TotalEnergies Marketing Afrique SAS to acquire a 50% stake in TotalEnergies Marketing Egypt for US$186 million, with additional proceeds of up to US$17.3 million.
Partnership with TotalEnergies, a leading global multi-energy company with a strong brand and successful track record in Egypt, includes a diversified portfolio of 240 fuel retail stations, more than 100 convenience stores, more than 250 lubricant change stations and car washes , and as a wholesale fuel, aviation fuel and lubricant business.
Through this transaction, Adnoc Distribution and TotalEnergies will develop future growth opportunities for TotalEnergies Egypt by unlocking value potential and exploring beneficial synergies in fuel distribution, lubricants and aviation businesses driven by economic growth and post-pandemic recovery.
The acquisition will also refurbish several petrol stations to create the full Adnoc brand, with certain future sites to be built under the Adnoc brand to gain a foothold in Egypt’s fast-growing fuel retail market.
The acquisition is expected to close in the first quarter of 2023, subject to 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 an important milestone in Adnoc Distribution’s international growth story. Egypt is the most populous in the Arab world. We look forward to entering such a dynamic market. The acquisition also aligns well with the Sustainable Economic Growth Industrial Partnership between the UAE, Bahrain, Egypt and Jordan and will leverage the strengths of the UAE and Egypt to boost the relevant market growth of.
Bader Saeed Al Lamki, CEO of Adnoc Distribution, said: “Egypt’s fuel retail market is extremely attractive with exciting future growth potential. Due to its young and expanding population, and a series of progressive economic reforms, Egypt’s GDP has achieved positive growth and the outlook is promising.
“This acquisition of Adnoc Distribution reaffirms our commitment to expanding our business in attractive international growth markets. It demonstrates our ability to leverage our experience in fuel and non-fuel retailing to deploy cash to accelerate our international expansion , and realize natural business synergies and partnership opportunities that allow us to enter new and dynamic markets quickly and efficiently.
The acquisition will benefit Adnoc Distribution from the first year following the closing of the transaction. We look forward to serving our customers in Egypt with the best possible service and partnering with TotalEnergies to accelerate our international expansion in Egypt and beyond,” added Al Lamki.
Thierry Pflimlin, President Marketing and Services at TotalEnergies said: “TotalEnergies is delighted to be partnering with Adnoc Distribution in Egypt. The extensive experience of the UAE’s leading fuel distributor will bring considerable added value to TotalEnergies Egypt. We look forward to working with Adnoc Distribution in its international growth strategy cooperating.”
The acquisition is another milestone in Adnoc Distribution’s international growth strategy, which opened its first site outside the UAE in Saudi Arabia in 2018 and has 55 sites in Saudi Arabia as of March 2022. In addition, the company’s Adnoc Voyager lubricants continue to expand the company’s overall international presence, exporting to 20 countries around the world. – arab trade news agency
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