The Emirati company, ADNOC, has completed the procedures for acquiring half of the Total Energy stations in Egypt, as part of its plan to expand regionally.
ADNOC Distribution – the arm of the Abu Dhabi National Oil Company in fuel trading and distribution – announced today, Wednesday, February 15, that it had completed its acquisition from Total Energy Marketing Africa SAS of a 50% stake in Total Energy Marketing Egypt.
The deal, which was announced last July, is an important step in ADNOC’s march and plans to expand and open new markets, as part of the Emirati company’s ambitious strategy that focuses on fast-growing markets.
The first presence in Egypt
The completion of the deal represents the first official presence of the largest Emirati company in the fuel distribution and retail sector in the Egyptian market, according to data seen by the specialized energy platform.
The transaction is expected to boost ADNOC Distribution’s EBITDA, first year after completion of the acquisition (6% increase on a 100% consolidation basis).
The value of ADNOC Distribution’s deal with “Total Energy” is approximately $186 million, with an additional amount of $17.3 million, upon fulfillment of certain “acquisition” conditions.
fuel market in Egypt
Total Energy Egypt is one of the top 4 fuel retail companies in Egypt with a strong brand and a proven track record.
ADNOC’s partnership with “Total Energy” includes a diversified business portfolio in the field of refining and petrochemicals, which includes 240 retail fuel stations, more than 100 retail stores, more than 250 oil change stations and car wash centers, wholesale fuel, jet fuel and lubricant operations. .
The acquisition is an important step in ADNOC Distribution’s march and its plans to expand internationally, as the company opened its first station outside the UAE in Saudi Arabia in 2018, as it currently operates 66 service stations (as of December 31, 2022). ADNOC Voyager lubricants have helped expand ADNOC Distribution’s international presence, by exporting them to 25 countries around the world.
ADNOC plans in Egypt
ADNOC intends to open service stations and provide state-of-the-art refueling and retail stores, through a digitally enhanced shopping experience for customers in Egypt.
The Emirati company plans to introduce the concept of distinctive ADNOC Oasis stores to the Egyptian market. To offer customers an unparalleled shopping experience.
The acquisition includes the renovation of a number of service stations to comply with the standards of the ADNOC brand, in addition to the establishment of selected new sites in the future bearing its brand, which enhances the presence of the Emirati company in the Egyptian market for retail fuel distribution, which is witnessing rapid growth.
The announcement follows ADNOC Distribution’s strong performance last year, as the company opened 68 new service stations across the UAE and Saudi Arabia, recording EBITDA growth of 3.52 billion dirhams ($0.96 billion), and a net profit of 2.75 billion dirhams. One billion dirhams ($0.75 billion).
Fast growing markets
Badr Saeed Al-Lamki, CEO of ADNOC Distribution, said: “We are pleased to enter a fast-growing market such as the Egyptian market, which has great potential in the field of fuel distribution and mobility solutions.”
He added: “Having Total Energy as our partner adds more strength and stability to this partnership, and we look forward to strengthening the bonds of cooperation with them, and enhancing potential growth opportunities in the region.”
He pointed out that the completion of this deal represents a milestone in ADNOC Distribution’s march to expand internationally, and confirms its ability to expand in promising international markets, and its commitment to its smart growth strategy, especially since Egypt is the largest Arab country in terms of population.
For his part, Terry Pflemlen, Head of Marketing and Services at Total Energy, said: “Total Energy is pleased to join its efforts with ADNOC Distribution in Egypt, as the proven track record of this leading company in the UAE in the field of fuel distribution will add great value.” Total Energy Marketing Company Egypt.
He added, “We look forward to continuing cooperation with ADNOC Distribution as part of its international expansion strategy,” according to the Emirates News Agency.
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