Dubai: The Abu Dhabi fuel retailer ADNOC Distribution has completed the buyout of a 50 per cent stake in TotalEnergies Marketing Egypt llc, which will give the former considerable leeway to expand in the North African market.
Egypt represents the second big outside-of-UAE push for the company, which already has a wide network in Saudi Arabia.
It was in July last that ADNOC Distribution made the formal entry into the Egypot market. The stake acquisition will likely lift ‘ADNOC Distribution's EBITDA from year 1 post-closing (c.+6 per cent on a fully-consolidated basis)’, the company said in a statement. TotalEnergies Marketing Egypt is among the leading fuel retailers in Egypt. (The stake was bought from TotalEnergies MArketing Afrique SAS.)
The alliance now oversees 240 fuel retail stations, 100 plus convenience stores, more than 250 lube changing stations and car washes. There is also a wholesale fuel, aviation fuel, and lubricant operation.
“In addition to introducing the digitally-enabled ADNOC service station offering to customers in Egypt, ADNOC Distribution also plans to bring its signature Oasis convenience store to the market,” the statement added.
Last year, the company opened 68 service stations across its network in the UAE and Saudi Arabia, and recorded a net profit of Dh2.75 billion.
“Closing this transaction marks a significant milestone in ADNOC Distribution’s international growth journey, demonstrating our ability to expand in attractive international markets, and reaffirming commitment to our 'Smart Growth Strategy'," said Bader Saeed Al Lamki, CEO of ADNOC Distribution. "Egypt is the Arab world’s most populous country with great economic potential, and we look forward to bringing our offering to this dynamic market.”
Overseas roles
The company opened its first service station outside the UAE in 2018, through entering Saudi Arabia and now operates 66 sites there. There is also the ADNOC Voyager lubricant business, currently covering 25 countries.
“We are excited with our move into a fastgrowing market like Egypt which has a significant potential in fuel retail and mobility solutions," said Al Lamki. "To have TotalEnergies as our partners in Egypt offers great strength and stability, and we look forward to working closely with them to foster potential growth opportunities across the region."
