Adnoc Distribution to Acquire Shell Downstream South Africa in $1 Billion Enterprise Value Deal
Adnoc Distribution, a UAE-based fuel and convenience retailer and subsidiary of energy major Adnoc, Tuesday said it has agreed to acquire the 100% share capital of Shell Downstream South Africa from Shell South Africa Holdings, a unit of Shell (SHEL). The deal has an implied enterprise value of about $1 billion, without consideration of adjustments for net debt and working capital. It is expected to close in 2027, conditional upon the completion of customary regulatory and other conditions, the company said in a statement. Upon completion of the deal, a 28% stake in the target will be sold to a local empowerment partner and under a Employee Stock Option Plan, the statement said. The deal includes SDSA's 580 company and dealer-owned fuel stations, as well as its wholesale fuel, aviation and lubricants operations. SDSA, which represents Shell's downstream business in South Africa, had fuel volumes of about 3.5 billion liters and operated 360 convenience stores as of 2025, the statement said. The deal is expected to increase Adnoc Distribution's earnings per share by 6% in its first full year and generate an internal rate of return above the company's target for its fuel.
Adnoc Distribution, a UAE-based fuel and convenience retailer and subsidiary of energy major Adnoc, Tuesday said it has agreed to acquire the 100% share capital of Shell Downstream South Africa from Shell South Africa Holdings, a unit of Shell (SHEL).
The deal has an implied enterprise value of about $1 billion, without consideration of adjustments for net debt and working capital.
It is expected to close in 2027, conditional upon the completion of customary regulatory and other conditions, the company said in a statement.
Upon completion of the deal, a 28% stake in the target will be sold to a local empowerment partner and under a Employee Stock Option Plan, the statement said.
The deal includes SDSA's 580 company and dealer-owned fuel stations, as well as its wholesale fuel, aviation and lubricants operations.
SDSA, which represents Shell's downstream business in South Africa, had fuel volumes of about 3.5 billion liters and operated 360 convenience stores as of 2025, the statement said.
The deal is expected to increase Adnoc Distribution's earnings per share by 6% in its first full year and generate an internal rate of return above the company's target for its fuel.