ADNOC Distribution announced on Wednesday that it has completed its acquisition from TotalEnergies Marketing Afrique SAS of a 50% stake in TotalEnergies Marketing Egypt LLC.
In a press statement, it said that the closing of this landmark transaction, which was first announced in July 2022, marks the official entry of the UAE’s largest fuel and retail distributor into the Egyptian market.
The acquisition is expected to uplift ADNOC Distribution’s EBITDA from year 1 post-closing (+6% on a fully-consolidated basis).
TotalEnergies Marketing Egypt is among the leading fuel retail operators in Egypt.
“With a strong brand and a successful track record, this acquisition is an important milestone in ADNOC Distribution’s international growth journey. The partnership includes a diversified downstream portfolio of 240 fuel retail stations, 100+ convenience stores, 250+ lube changing stations, and car washes, as well as wholesale fuel, aviation fuel, and lubricant operations,” ADNOC said.
Bader Saeed Al Lamki, CEO of ADNOC Distribution, said: “We are excited about our move into a fast-growing market like Egypt which has significant potential in the fuel retail and mobility solutions. To have TotalEnergies as our partner in Egypt offers great strength and stability, and we look forward to working closely with them to foster potential growth opportunities across the region.
“Closing this transaction marks a significant milestone in ADNOC Distribution’s international growth journey, demonstrating our ability to expand in attractive international markets, and reaffirming our commitment to our Smart Growth Strategy. Egypt is the Arab world’s most populous country with great economic potential, and we look forward to bringing our offering to this dynamic market.”
Thierry Pflimlin, President of Marketing and Services at TotalEnergies, said, “TotalEnergies is pleased to be joining forces with ADNOC Distribution in Egypt. The rich experience of the leading fuel distributor in the UAE will bring substantial added value to TotalEnergies Marketing Egypt. We look forward to collaborating with ADNOC Distribution in its international growth strategy.”
This announcement comes following a remarkable year for ADNOC Distribution. In 2022, the company opened 68 new service stations across its network in the UAE and KSA, while announcing strong results of an annual EBITDA of AED 3.5bn, and net profit of AED 2.75bn.
In addition to introducing the digitally-enabled ADNOC service station offering to customers in Egypt, ADNOC Distribution also plans to bring its signature Oasis convenience store to the market.
