ADNOC Distribution, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), has signed an agreement to acquire a 50% stake in Total Energy Egypt.
The deal was valued at $203.3 million and includes retail and wholesale gas stations and jet fuel.
ADNOC explained in a press release that the cost of the acquisition is $186 million in addition to an additional $17.3 million if certain conditions are met, and the Emirati company did not elaborate on those conditions.
Later that day, Badr Saeed Al Lamki told Al Sharq that the deal would be financed from the company’s own resources, adding that the deal would boost ADNOC’s revenue by around 6%.
ADNOC Distribution is the largest fuel distributor and retailer in the United Arab Emirates, and a subsidiary of the Abu Dhabi National Oil Company, which is responsible for all oil and gas production in the emirate.
The acquisition is expected to be completed in the first quarter of 2023, subject to the fulfillment of certain conditions, including the usual regulatory approvals.
According to the statement, the acquisition will include the refurbishment of several gas stations to be compatible with the ADNOC brand, in addition to the construction of new stations.
Total Energy Egypt was established in 1998 and is one of the top four refueling companies in Egypt with 240 stations.
Source: Cairo 24