Adnoc Distribution signed an agreement with South African investment group Reatile Group for the latter to acquire a minority stake in Shell’s downstream business in South Africa, as part of Adnoc Distribution’s proposed acquisition of the business.
The definitive agreement, signed on August 20, follows Adnoc Distribution’s announcement in July that it had agreed to acquire Shell Downstream South Africa (SDSA) from Shell South Africa Holdings.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Under the latest agreement, Reatile Group will take a minority interest in SDSA once Adnoc Distribution completes the proposed acquisition.
The partnership is structured as a Broad-Based Black Economic Empowerment (B-BBEE) agreement, South Africa’s framework aimed at increasing economic participation and ownership among historically disadvantaged groups.
The transaction remains subject to customary regulatory approvals and the fulfilment of other conditions required for closing.
Adnoc Distribution said the agreement supports its participation in South Africa’s B-BBEE framework while aligning with the country’s priorities around local participation, energy security and job creation.
Reatile Group is an investment holding company focused on the African energy sector. The company has operated in the sector for 23 years and has investments across energy businesses as well as some of the largest energy corporations in South Africa and globally.
Adnoc Distribution’s proposed acquisition of SDSA is part of its broader international expansion strategy. The company has been increasing its focus on growing its retail fuel and mobility business beyond the UAE.
The latest agreement provides for local participation in the South African business if the acquisition is completed.
Adnoc Distribution and Reatile did not disclose the value of the minority stake under the agreement.
Source: Khaleej Times