Sunday 24 / November / 2024
Abu Dhabi: Adnoc Distribution announced on Wednesday that it has completed its acquisition from TotalEnergies Marketing Afrique SAS of a 50 per cent stake in TotalEnergies Marketing Egypt.
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 (c.+6 per cent 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.
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.
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 AED3.52 billion, and net profit of AED2.75 billion.
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 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 join 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.”
Adnoc Distribution’s expansion into Egypt is the latest achievement in its international growth journey. The company opened its first service station outside the UAE borders in 2018 by expanding into Saudi Arabia where it currently operates 66 sites (as of 31st December 2022). Additionally, Adnoc Voyager continues to grow the company’s international footprint, with 25 countries where its lubricant products are marketed (as of 31st December 2022).
