By Des Erasmus
Abu Dhabi’s ADNOC Distribution has agreed to buy Shell’s South African downstream business in a deal valued at about $1 billion, giving the Gulf state-backed fuel retailer one of the biggest forecourt networks in the country and a major foothold in Africa’s most industrialised economy.
The company said on Tuesday via a statement that it had entered into a “definitive agreement” to acquire 100% of Shell Downstream South Africa from Shell South Africa Holdings, including 580 company- and dealer-owned fuel stations, wholesale fuel, aviation, marine and lubricants operations.
The transaction, which is still subject to regulatory approvals and other closing conditions, is expected to close in 2027.
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ADNOC said the implied enterprise value was about $1 billion before adjustments for net debt and working capital.
The acquisition would give ADNOC immediate scale in the country’s tightly
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