LONDON — Shell is in advanced negotiations to sell its retail fuel station business in South Africa to a subsidiary of Abu Dhabi National Oil Company (ADNOC) in a deal valued at approximately $1 billion, according to people familiar with the matter.
ADNOC has emerged as the preferred bidder after Shell’s earlier discussions with global commodities trader Gunvor Group failed to result in an agreement. The transaction could be finalized as early as the current quarter, subject to the completion of negotiations.
The proposed acquisition includes around 600 Shell-branded fuel stations across South Africa, representing roughly 10% of the country’s retail fuel market. The deal would significantly strengthen ADNOC’s presence in Africa’s downstream energy sector while marking another step in Shell’s strategy to streamline its global retail portfolio.
Shell launched the sale process in 2024 as part of a broader review of its downstream assets. Despite geopolitical tensions in the Middle East, negotiations have continued to progress.
For ADNOC, the acquisition aligns with its international expansion strategy. Earlier this year, the company agreed to invest $500 million alongside BP to develop a natural gas field in Egypt and has also been expanding its retail fuel operations in the country.
If completed, the South African transaction would represent one of ADNOC’s largest downstream acquisitions in Africa, further extending the UAE energy giant’s footprint across key international markets.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök