ADNOC Distribution, the UAE’s fuel and convenience retail giant, has struck a definitive agreement to acquire the entire share capital of Shell Downstream South Africa from Shell South Africa Holdings, in a transaction valued at roughly $1 billion before debt and working capital adjustments.
The deal, expected to close in 2027 pending regulatory approval, will see 28 percent of the South African unit sold to a local empowerment partner and an employee stock ownership scheme, in line with the country’s Broad-Based Black Economic Empowerment rules. South Africa becomes ADNOC Distribution’s fourth international market, following earlier moves into Egypt and Saudi Arabia.
Shell Downstream South Africa runs about 580 retail and dealer-operated fuel and convenience sites, along with lubricants and aviation and marine fuel operations, having pushed roughly 3.5 billion litres of fuel through 360 convenience stores in 2025. ADNOC Distribution said it will retain the Shell brand at the pumps under a long-term licensing arrangement.
Group CEO Bader Saeed Al Lamki said the acquisition reflects confidence in South Africa’s fuel retail sector and forms part of a broader push to diversify the company’s international footprint. ADNOC Distribution expects the purchase to lift earnings per share by 6 percent in its first full year and to generate returns above its investment threshold.
Source: adnocdistribution.ae