JOHANNESBURG, April 14 – Abu Dhabi National Oil Company is in advanced discussions to acquire fuel retail assets from Shell Plc in South Africa, in a deal that could be valued at around $1 billion, Bloomberg News reported on Tuesday, citing people familiar with the matter.
The proposed transaction would see Adnoc take over roughly 600 service stations, giving the Abu Dhabi-based energy giant an estimated 10% share of Africa’s largest fuel market.
Adnoc emerged as the preferred bidder after earlier negotiations between Shell and Gunvor Group collapsed. An agreement could be reached as early as this quarter, sources said.
The move highlights Adnoc’s broader push to expand downstream and retail operations across Africa, even as global energy markets remain volatile amid geopolitical tensions. Earlier this year, the company also committed to a $500 million gas development investment in Egypt alongside BP Plc.
South Africa’s fuel retail sector has undergone significant consolidation in recent years. Glencore Plc previously acquired Chevron’s Caltex-branded network, while Vitol Group, through Vivo Energy, took control of Engen, the country’s largest fuel retailer.
Other potential bidders for Shell’s assets had included Puma Energy, Sasol Limited and PetroSA, though they are no longer part of the process.
Shell has been reviewing and divesting non-core assets globally as part of a broader portfolio restructuring strategy.
