New owner taking over 600 petrol stations in South Africa
Adnoc Distribution has entered into a definitive agreement to acquire a minority equity interest in Shell Downstream South Africa (SDSA).
The deal will see Adnoc take control of Shell’s South African petrol stations, with an implied enterprise value of approximately $1 billion.
The proposed acquisition was announced in July 2026, and the deal is expected to be completed by the end of 2027.
The deal is currently going through customary regulatory processes and is subject to the satisfaction of other conditions precedent and closing conditions.
Adnoc is currently the largest fuel supplier in the United Arab Emirates, and was the preferred bidder for SDSA in 2026.
This comes as Shell looks to sell off its non-core holdings to help it shift its focus to operations that sustain long-term oil and gas supply.
This led the company to consider selling its operations in South Africa, which consist of approximately 600 fuel stations.
Shell initially entered into discussions with Gunvor Group, before these negotiations eventually fell through.
Following this, negotiations began with Adnoc, which has now had to comply with South Africa’s B-BBEE laws to operate in the country.
Adnoc said that it “affirms its commitment to South Africa’s B-BBEE policies while contributing to the country’s long-term economic priorities, including local participation, energy security, job creation and sustainable value creation.”
The company has partnered with Realtile Group to meet BEE requirements, with Adnoc’s CEO, Bader Saeed Al Lamki, saying the move “marks an important step in our commitment to South Africa.”
“Reatile Group has a deep understanding of the South African energy sector, its regulatory environment and operating requirements,” he said.
“With a shared focus on sustainable value creation, we look forward to building the business’s strong foundations for the benefit of customers, employees and communities.”
Realtile Group chairman and founder, Simphiwe Mehlomakulu, echoed this sentiment, calling the partnership a milestone for the company.
“Our partnership with ADNOC Distribution represents a significant milestone for Reatile Group and reflects the confidence placed in our 23-year track record of investing in, operating and growing energy businesses across South Africa,” he said.
“By combining ADNOC Distribution’s global expertise and financial strength with Reatile’s deep local market knowledge and long-standing industry relationships, we are well positioned to support the continued growth of this strategic business”.
The deal would make South Africa the fourth country where Adnoc has operations, alongside the UAE, Egypt, and Saudi Arabia.
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