South Africa’s fuel market set for shake-up as ADNOC Distribution expands

Cape Town – United Arab Emirates’ state-owned fuel retailer, Abu Dhabi National Oil Company (ADNOC) Distribution, is expanding into South Africa after agreeing to buy Shell Downstream South Africa for around US$1 billion (about R16 billion), reports say.

The acquisition includes Shell’s network of about 580 service stations across the country, as well as its commercial fuels, aviation fuels, lubricants and supply operations, EWN reported.

ADNOC said the deal marks a major step in its international growth strategy and will strengthen its presence in Africa’s largest fuel market. It will also be the Emirati energy giant’s first entry into South Africa.

Correct: Adnoc Distribution has agreed to buy Shell’s fuel stations in South Africa at a $1 billion value, giving the UAE firm access to Africa’s biggest economy for the first time.

CEO Bader Al Lamki discusses the deal with Bloomberg’s Abeer Abu Omar https://t.co/vAUHInrwMh pic.twitter.com/iZnW6Mdv58

— Bloomberg (@business) July 7, 2026

According to Daily Investor, the transaction is expected to close next year, subject to regulatory approvals, including clearance from South African competition authorities.

Once completed, ADNOC plans to sell a 28% stake in the business to a local empowerment partner and introduce an employee share ownership scheme.

The company will continue operating the service stations under the Shell brand through a long-term licensing agreement.

The report said that the deal gives ADNOC, one of the Middle East’s largest energy companies, a significant foothold in Africa’s most industrialised economy. It also forms part of the company’s broader strategy to expand beyond the Gulf region, following a series of major international acquisitions backed by Abu Dhabi’s oil wealth.

WATCH | South Africa’s fuel retail landscape is set for a major shift as Abu Dhabi’s ADNOC Distribution moves to acquire Shell’s downstream business in a R16.3 billion deal. Shell Downstream South Africa’s Aluwani Museisi unpacks what the deal means for the industry. pic.twitter.com/jxUzrzLCRe

— SABC News (@SABCNews) July 7, 2026

For Shell, the sale is the latest step in a global strategy to simplify its downstream business and focus investment on operations that deliver the strongest financial returns. The company has been reviewing assets across several markets as it reshapes its global portfolio.

The acquisition is also expected to further reshape South Africa’s fuel retail sector, following Glencore’s acquisition of Caltex in 2018 and Vitol Group’s Vivo Energy purchase of Engen last year. It also comes after Shell sold its stake in South Africa’s largest refinery to the Central Energy Fund, while other international oil majors, including TotalEnergies and BP, have scaled back parts of their South African operations.

The transaction remains subject to regulatory approvals before it can be finalised.