United Arab Emirates-based Adnoc Distribution expanded into Egypt with the acquisition of a 50% stake of French energy company TotalEnergies’ Egyptian operations, including part ownership in its lubricants sales and lube service stations.
Announced July 28, the deal – in which Adnoc Distribution acquired half of TotalEnergies Marketing Egypt LLC from TotalEnergies Marketing Afrique SAS – will see the company gain part ownership in a number of assets, including lubricants sales and more than 250 lube service stations. It will also acquire fuel retail stations, fuel distribution, aviation fuel business operations and convenience stores.
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Adnoc Distribution bought the stake for U.S. $186 million, with potential for up to an additional $17.3 million if certain conditions are met. The acquisition will be completed in the first quarter of next year.
“This acquisition marks a significant milestone in Adnoc Distribution’s international growth story,” Sultan Ahmed Al Jaber, minister of industry and advanced technology, managing director and group CEO of Abu Dhabi National Oil Co. and chairman of Adnoc Distribution, said in the company’s press release. “Egypt is the Arab world’s most populous country, and we look forward to entering such a dynamic market. The acquisition is also well aligned with the Industrial Partnership for Sustainable Economic Growth between the U.A.E., Bahrain, Egypt and Jordan and will leverage the strengths of both the U.A.E. and Egypt to boost growth in the related markets.”
French company TotalEnergies manufactures lubes for automotive, industrial, and marine applications, along with distributing lubes.
TotalEnergies Egypt operates about 7% of the service stations in Egypt and is a top-four fuel retail operator in the country, according to both companies.
Abu Dhabi National Oil Co., the United Arab Emirates state-owned oil company, says Adnoc Distribution is the U.A.E.’s largest fuel and retail distributor. Adnoc Distribution sells automotive, industrial, and marine lubricants, along with greases, coolants and brake fluids.