UAE's fuel and retail distributor, ADNOC Distribution has signed on Thursday an agreement with France's TotalEnergies to acquire 50 percent stake in the latter's Egyptian unit TotalEnergies Marketing Egypt. The UAE firm is buying the unit for approximately $186 million, with an additional earn-out of up to $17.3 million – if certain conditions are satisfied, an ADNOC statement read. The acquisition is expected to be completed in the first quarter of 2023 pending satisfaction of certain conditions, including customary regulatory approvals. Established in 1998, TotalEnergies Egypt is among the top four fuel retail operators in the North African country. The acquisition is part of ADNOC Distribution's expansion plans. The partnership with TotalEnergies includes a diversified portfolio comprising of 240 fuel retail stations, more than 100 convenience stores, more than 250 lube changing stations, and car washes, in addition to wholesale fuel, aviation fuel, and lubricant operations. "Through this deal, ADNOC Distribution and TotalEnergies will develop future growth opportunities of TotalEnergies Egypt through unlocking value potential and exploring beneficial synergies in fuel distribution, lubricants and aviation businesses driven by economic growth and post COVID recovery." the statement read. The partnership will also see "the refurbishment of several service stations to full ADNOC branding, with certain future sites being constructed under the ADNOC brand, offering a robust foothold in a fast-growing fuel retail market in Egypt." UAE Minister of Industry Sultan Ahmed Al Jaber, who is also chairman of ADNOC Distribution, said the acquisition is well aligned with the industrial partnership for sustainable economic growth between the UAE, Bahrain, Egypt, and Jordan. It will leverage the strengths of both the UAE and Egypt to boost growth in the related markets, Al Jaber added. "Egypt's fuel retail market is highly attractive with exciting potential for future growth. Due to its young and expanding population, alongside a series of progressive economic reforms, Egypt has recorded positive GDP growth with a strong outlook." Bader Saeed Al Lamki, CEO of ADNOC Distribution, said. "We look forward to providing the best possible service to customers in Egypt, and working with TotalEnergies to accelerate our international expansion in Egypt and beyond," added Al Lamki. Thierry Pflimlin, president of Marketing and Services at TotalEnergies, said: "TotalEnergies is pleased to be joining forces with ADNOC Distribution in Egypt. The rich experience of the leading fuel distributor in the UAE will bring substantial added value to TotalEnergies Egypt."
