Emirati-based ADNOC has completed the acquisition of half of Total Energy’s plants in Egypt as part of its regional expansion plan.

ADNOC Distribution, the fuel trading and distribution division of Abu Dhabi National Oil Company, announced today, Wednesday, February 15, that it has completed the acquisition of a 50% stake in Total Energy Marketing Egypt from Total Energy Marketing Africa SAS.

The deal, which was announced last July, is a major step forward for ADNOC and plans to expand and open up new markets as part of the Emirati company’s ambitious strategy to target high-growth markets.

The completion of the transaction represents the first official presence of the largest Emirati company in the fuel distribution and retail sector in the Egyptian market, according to the Specialized Energy Platform.

The transaction is expected to boost ADNOC Distribution’s EBITDA in the first year after completion of the acquisition (up 6% on a 100% consolidation).

The ADNOC Distribution deal with Total Energy is valued at approximately $186 million, with an additional $17.3 million subject to certain “acquisition” conditions.

Total Energy Egypt is one of the top four fuel retail companies in Egypt with a strong brand and successful track record.

ADNOC’s partnership with Total Energy includes a diversified refining and petrochemicals business portfolio that includes 240 retail gas stations, over 100 retail stores, over 250 oil changes and car washes, wholesale fuel, jet fuel and lubrication operations. .

ADNOC intends to open service stations and provide modern gas stations and retail stores through digital technology for customers in Egypt.

Emirati plans to introduce the ADNOC Oasis unique store concept to the Egyptian market to provide shoppers with an unparalleled shopping experience.

The acquisition includes the refurbishment of a number of filling stations to ADNOC brand standards, as well as the creation in the future of separate new sites bearing its brand, which will strengthen the Emirati company’s presence in the Egyptian market for fuel retail, which is experiencing explosive growth.

The announcement follows ADNOC Distribution’s strong performance last year when the company opened 68 new gas stations in the UAE and Saudi Arabia, recording AED3.52 billion ($0.96 billion) in EBITDA and AED2.75 billion in net income. dirhams. $0.75 billion).

Badr Saeed Al-Lamki, CEO of ADNOC Distribution, said: “We are excited to enter the fast growing market of Egypt, which has great potential in fuel distribution and mobility solutions.”

He added: “Having Total Energy as our partner gives this partnership more strength and stability, and we look forward to strengthening our ties with them and expanding potential growth opportunities in the region.”

He noted that the completion of this transaction represents a milestone on ADNOC Distribution’s path to international expansion and confirms its ability to expand in promising international markets, as well as its commitment to a smart growth strategy, especially since Egypt is the largest Arab country in terms of population.

For his part, Terry Pfmelin, 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 fuel distribution will add great value.” Total Energy Marketing Company Egypt.

Source: agencies

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Robin Jackson is the editor-in-chief at 24PalNews. As an editor and author who covers business and finance, Robin shares the latest business news, trends, and insights with his extensive audience.

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