ADNOC Distribution to buy Shell SA downstream for $1bn

A major state-owned fuel retailer from the United Arab Emirates has agreed to acquire Shell’s downstream business in South Africa in a deal valued at approximately $1 billion. The agreement, announced on Tuesday, July 7, 2026, marks a significant shift in South Africa’s energy sector and gives Abu Dhabi National Oil Company (ADNOC) Distribution its first foothold in Africa’s largest economy.

The acquisition covers Shell Downstream South Africa, which includes a network of about 580 service stations, making it one of the country’s largest fuel retail operations. The deal also encompasses Shell’s commercial fuels, aviation and marine fuels, lubricants businesses, and approximately 360 associated convenience stores. The transaction is expected to close in 2027, pending regulatory approvals from South African authorities.

For ADNOC Distribution, the move is a central part of its international growth strategy. Chief Executive Bader Saeed Al Lamki described the acquisition as a transformative step, citing South Africa’s developed infrastructure, growing driving-age population, and regulated fuel pricing as attractive market fundamentals. The company stated the deal would immediately...