Back to the complete issue
Thursday, 16 February 2023

Adnoc Distribution closes acquisition of 50% of TotalEnergies Egypt

Adnoc Distribution now owns half of one of Egypt’s largest fuel retailers: Adnoc Distribution, the distribution arm of UAE’s state oil company Abu Dhabi National Oil Company, has completed its acquisition of a 50% stake in fuel retailer TotalEnergies Egypt, it said in a statement (pdf) yesterday. The acquisition marks Adnoc’s entry into the Egyptian fuel distribution market. The transaction has been in the works since last July.

What they bought: TotalEnergies Egypt is one of the country’s largest fuel retailers. It has a network of 240 fuel stations, more than 100 stores and more than 250 lube changing stations and car washes, as well as other fuel and lube operations.

By the numbers: Adnoc Distribution could stand to gain a c. 6% jump in EBITDA on a fully-consolidated basis in a year’s time, according to the release. The company’s EBITDA stood at AED 3.5 bn in 2022, while net earnings came in at AED 2.75 bn.

It’s 50-50: Shares of TotalEnergies Egypt are now split equally between Adnoc Distribution and TotalEnergies Marketing Afrique (TEMA). B Investments and another BPE Partners-backed vehicle exited TotalEnergies Egypt last week, divesting their combined 15.38% stake and handing complete ownership of the filling station to TEMA. Adnoc’s acquisition will yield an additional USD 2.2 mn for BPE Partners’ B investments and USD 3.2 mn for the other BPE Partners-backed vehicle.

The new owners: Adnoc Distribution is the largest fuel retailer and distributor in the UAE, operating more than 500 fuel stations and 362 convenience stores. Egypt is the company’s third market after it launched in Saudi Arabia in 2018 where it operates 66 filling stations.

Adnoc is looking to roll out “digitally-enabled Adnoc service stations” in Egypt and also said it plans to bring its Oasis convenience store brand here.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.