Shell sells forecourts to Adnoc: Abu Dhabi money and 28% BEE deal seals $1bn deal

A $1 billion deal hands Abu Dhabi's Adnoc 580 Shell-branded fuel stations across South Africa, plus wholesale, aviation and lubricants operations — its first foothold in the continent's largest economy. Shell keeps its brand on the pumps via a long-term licensing deal, while Adnoc plans to sell 28% to a local empowerment partner. It's the latest in Adnoc's global buying spree, and the latest reshuffle of SA's fuel retail sector following Glencore's Caltex buy and Vivo Energy's Engen takeover. For Shell, it's another non-core asset gone as it doubles down on Canada. Two years in the making — now sealed. .By Anthony Di Paola and Abeer Abu Omar.Abu Dhabi National Oil Co.’s retail unit agreed to buy Shell Plc’s fuel stations in South Africa at a $1 billion enterprise value, giving the state company access to Africa’s biggest economy for the first time.Adnoc Distribution will gain control of 580 retail station in the country as well as wholesale fuel, aviation and lubricants operations, it said in a statement Tuesday, confirming an earlier report from Bloomberg News. The deal is expected to close next year, after which the company plans to sell 28% of the business to “a local empowerment partner” and for employee stock options.The acquisition is the latest in a wave of M&A that’s made Adnoc and its units among the biggest energy dealmakers in recent years. Backed by billions of dollars of Abu Dhabi’s oil money, the company has picked up natural gas assets from the US to Africa and Central Asia, and snapped up German chemical firm Covestro AG as it looks to expand its influence around the world.Adnoc Distribution emerged as the preferred bidder for the Shell portfolio earlier this year after talks with Gunvor Group, one of the world’s biggest independent oil traders, fell through. For Shell, the sale would be a step forward in its plan to sell non-core holdings as it focuses on assets such as those in Canada in a push to sustain oil and gas production in the long-term.Expanding in fuel retailing in Africa’s largest market will also provide opportunities for Adnoc’s trading unit to supply fuels to the business, Adnoc Distribution’s Chief Executive Officer Bader Al Lamki said in a Bloomberg Television interview. “We’ve been looking at this deal for nearly two years and we’ve studied it from all angles,” he said. “This is the right transaction that will allow us to accelerate our dividend payout to our shareholders.”Adnoc will continue to use the Shell brand for the retail stations and lubricants in South Africa under a long-term brand licensing agreement, according to the statement. The deal is expected to bolster Adnoc Distribution’s earnings per share by 6% in the first full year after completion, it said..Read more:.FT: Inside the failed green revolutions at BP and Shell that cost billions.The sale process, which started in 2024, has progressed despite the conflict in the Middle East bringing large-scale disruption to Adnoc and other major energy companies in the Middle East. Still, Gulf investors have pushed ahead with a string of recent overseas deals, spanning alternative asset managers, private credit and technology platforms. Last month, two of Abu Dhabi’s biggest wealth funds agreed to commit £1.5 billion ($2 billion) to back private equity firm EQT AB’s acquisition of Intertek Group Plc.Adnoc’s Distribution’s acquisition will further reshape South Africa’s retail fuel market. Glencore Plc acquired Chevron Corp.’s Caltex-branded stations in 2018, while Vitol Group’s Vivo Energy last year bought Engen Ltd., the nation’s largest fuel-station chain. Shell itself sold South Africa’s largest refinery to the state-owned Central Energy Fund after the oil major had stopped processing there in 2022..© 2026 Bloomberg L.P..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox every morning on weekdays. Register here.Support South Africa's bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.

Shell sells forecourts to Adnoc: Abu Dhabi money and 28% BEE deal seals $1bn deal

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