ADNOC Agrees $1 Billion Deal to Acquire Shell’s South African Fuel Business

The acquisition will give ADNOC Distribution control of one of South Africa’s largest fuel retail networks, strengthening the UAE energy giant’s footprint across the African market.

JOHANNESBURG, South Africa – ADNOC Distribution, the fuel retail arm of the Abu Dhabi National Oil Company (ADNOC), has agreed to acquire Shell’s downstream fuel business in South Africa in a deal valued at approximately $1 billion, marking one of the largest energy transactions on the continent this year.

The acquisition includes around 580 Shell-branded service stations, more than 360 convenience stores, and Shell’s commercial fuels, aviation fuels and marine fuels businesses in South Africa. The deal is expected to significantly expand ADNOC Distribution’s presence in Africa while strengthening its global retail network.

The transaction is part of Shell’s ongoing strategy to streamline its downstream operations and focus on businesses that deliver higher returns. For ADNOC, the acquisition represents a major step in its international expansion plans as it seeks to grow beyond the Middle East and establish a stronger position in high-growth energy markets.

Industry analysts say South Africa’s well-developed fuel distribution network and strategic location make it an attractive gateway for companies looking to expand across the African continent.

According to ADNOC Distribution, the acquisition aligns with its long-term strategy of investing in quality energy infrastructure and diversifying its portfolio through international assets. The company already operates one of the Middle East’s largest fuel retail networks and has been actively pursuing overseas expansion opportunities.

Once completed, the deal will provide ADNOC with immediate access to South Africa’s extensive fuel retail market, allowing it to serve millions of motorists while expanding its commercial fuel supply to industries including aviation, logistics and shipping.

Although the financial terms have been agreed, the transaction remains subject to regulatory approvals from South African competition authorities and other customary closing conditions before it can be finalised.Shell has maintained a presence in South Africa for decades through its network of service stations and fuel supply operations. The sale reflects a broader trend among global energy companies to reshape their portfolios in response to changing market conditions and the global energy transition.

Energy experts believe the acquisition could stimulate fresh investment in South Africa’s fuel retail sector while maintaining the country’s role as one of Africa’s largest and most sophisticated energy markets.

The deal also underscores growing investment from Gulf nations into African infrastructure and energy assets, highlighting the continent’s increasing importance in global investment strategies.

If approved, the acquisition will become one of ADNOC Distribution’s most significant international investments and reinforce South Africa’s position as a key destination for foreign direct investment in Africa’s energy sector.

TNAM