Adnoc Distribution has signed a definitive agreement to acquire 100 per cent of Shell Downstream South Africa (SDSA) from Shell South Africa Holdings, in a deal with an implied enterprise value of approximately $1 billion before adjustments for net debt and working capital.

The acquisition is expected to close in 2027, subject to regulatory approvals and other customary conditions.

Following completion, Adnoc Distribution plans to sell a 28 per cent stake in SDSA to a local empowerment partner and Employee Stock Option Plan (ESOP).

Under a long-term brand licensing agreement, Adnoc Distribution will retain the Shell brand for retail service stations and lubricants operations in South Africa.

The company said customers will continue to receive the same trusted services and experience under its ownership.

Bader Al Lamki, CEO of Adnoc Distribution, said: “The Proposed Acquisition marks a significant milestone in Adnoc Distribution's international growth strategy and reflects our confidence in South Africa as a high-potential, well-regulated fuel retail sector. Shell Downstream South Africa is a respected and financially strong business with deep roots in the local economy, and its values and ambitions align closely with our own. By bringing it into the Adnoc Distribution family, we plan to accelerate our international expansion, diversify our platform and create sustainable long-term value for our shareholders, our partners and the customers and communities that this business has proudly served for decades." -OGN/TradeArabia News Service