Overview
- A deal announced Tuesday between Adnoc Distribution and Shell covers roughly 580 service stations plus wholesale fuel, aviation and lubricants operations in South Africa.
- The transaction is described as an implied enterprise value of about $1 billion before adjustments for net debt and working capital, with final consideration subject to those post-closing adjustments.
- Shell will remain present through a long-term brand licensing agreement and both companies say existing SDSA staff will keep their jobs after the transfer of ownership.
- Adnoc plans to sell a 28% stake after closing to a local empowerment partner and an employee stock option plan to align with South African ownership and worker-participation rules.
- Completion is conditional on customary regulatory approvals and other closing conditions with the parties targeting 2027, and Adnoc projects the deal will be value-accretive, boosting earnings per share in the first full year.