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Oil & Gas

Adnoc Distribution closes acquisition of 50% stake in TotalEnergies Egypt

Posted: February 16, 2023 at 4:22 pm   /   by   /   comments (0)

Adnoc Distribution now owns half of one of Egypt’s largest fuel retailers: Adnoc Distribution, the distribution arm of UAE’s state oil company Abu Dhabi National Oil Company, has completed its acquisition of a 50% stake in fuel retailer TotalEnergies Egypt, it said in a statement yesterday. The acquisition marks Adnoc’s entry into the Egyptian fuel distribution market. The transaction has been in the works since last July.

What they bought: TotalEnergies Egypt is one of the country’s largest fuel retailers. It has a network of 240 fuel stations, more than 100 stores and more than 250 lube changing stations and car washes, as well as other fuel and lube operations.

By the numbers: Adnoc Distribution could stand to gain a c. 6% jump in EBITDA on a fully-consolidated basis in a year’s time, according to the release. The company’s EBITDA stood at AED 3.5 bn in 2022, while net earnings came in at AED 2.75 bn.

It’s 50-50: Shares of TotalEnergies Egypt are now split equally between Adnoc Distribution and TotalEnergies Marketing Afrique (TEMA). B Investments and another BPE Partners-backed vehicle exited TotalEnergies Egypt last week, divesting their combined 15.38% stake and handing complete ownership of the filling station to TEMA. Adnoc’s acquisition will yield an additional USD 2.2 mn for BPE Partners’ B investments and USD 3.2 mn for the other BPE Partners-backed vehicle.

The new owners: Adnoc Distribution is the largest fuel retailer and distributor in the UAE, operating more than 500 fuel stations and 362 convenience stores. Egypt is the company’s third market after it launched in Saudi Arabia in 2018 where it operates 66 filling stations.

Adnoc is looking to roll out “digitally-enabled Adnoc service stations” in Egypt and also said it plans to bring its Oasis convenience store brand here.