Shell Offloads S.Africa Downstream Business To Abu Dhabi
The acquisition gives Adnoc Distribution 580 stations and wholesale fuel operations, and is expected to lift earnings per share by 6% in the first full year.
- On Tuesday, ADNOC Distribution announced it will acquire Shell's downstream business in South Africa for about $1 billion, gaining control over 580 retail stations and entering Africa's largest economy.
- ADNOC said this acquisition marks a major step toward its ambition to become a global mobility retailer, having emerged as the preferred bidder after negotiations between Shell and Gunvor Group concluded without agreement.
- Under a long-term licensing agreement, the Shell brand will remain on the 580 stations; the transaction is expected to boost earnings per share by 6% in the first full year, providing a 10% market share.
- Separately, Shell reported a significant drop in second-quarter gas production citing impacts from the US-Iran war on Qatari volumes, though the company's share price rose nearly three percent in London morning deals on Tuesday.
- The transaction is expected to close in 2027 subject to regulatory approvals; afterward, ADNOC plans to sell 28% of the business to a local empowerment partner, continuing its recent wave of international acquisitions.
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Adnoc, state oil company of the United Arab Emirates (UAE), has announced an agreement to take over the fuel supply business in South Africa of the Anglo-Dutch company Shell for a business value of US$1 billion, which includes the 580 gas stations operated by Shell in the African country. In this way, Adnoc will acquire ... Continue reading "The state oil company of the Arab Emirates buys the 580 gas stations of Shell in South Africa" The post T…
ADNOC spends $1B on gas stations in South Africa
The Abu Dhabi state oil company’s retail arm, ADNOC Distribution, has bought Shell’s downstream business in South Africa for $1 billion, adding to a string of foreign acquisitions in recent months. The deal hands ADNOC 580 gas stations and a 10% market share in Africa’s largest economy.In the past year, ADNOC has invested in a Texan LNG project, taken a stake in Argentinian gas blocks, and completed a $16.9 billion takeover of German chemicals f…
Shell Offloads S.Africa Downstream Business To Abu Dhabi
British energy giant Shell announced Tuesday a deal to sell its South African downstream business, including 580 fuel stations, to the Abu Dhabi National Oil Company (ADNOC).Shell said the sale, valued at about $1 billion, formed part of its strategy to focus on “key markets”, as the company separately flagged a big drop in second-quarter gas production because of the US-Iran war.ADNOC said the “acquisition marks a major step towards” its “ambit…
Oil and gas company Shell is selling its network of gas stations in South Africa to state oil company Adnoc from the United Arab Emirates in a deal worth 1 billion dollars. The sale had been anticipated, as news agency Bloomberg reported last week that an agreement was close.
ADNOC's acquisition of Shell Downstream South Africa: What it means for the economy
ADNOC Distribution announced on Tuesday that it had entered an agreement that covers the $1 billion (about R16,2bn) acquisition of 100% of Shell Downstream South Africa (SDSA). ADNOC said that the $1bn was the implied value prior to adjustment for net debt and working capital. “This includes its 580 company and dealer-owned fuel stations, as well as its wholesale fuel, aviation and lubricants operations.” ADNOC added that the proposed acquisitio…
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