-- Abu Dhabi National Oil Co. is in advanced talks to acquire Shell's (Shel) South Africa fuel stations in a deal valued at about $1 billion, Bloomberg said Tuesday, citing people familiar with the matter.
Shell is negotiating the sale of its retail fuel network in South Africa to Adnoc, with discussions progressing toward a potential agreement as soon as this quarter, the report said.
Adnoc has emerged as the leading bidder after earlier negotiations between Shell and Gunvor Group collapsed, the report added, citing sources.
The acquisition would include roughly 600 service stations, giving Adnoc an estimated 10% share in South Africa's fuel retail market, according to the report.
The sale process, which began in 2024, has continued despite Middle East tensions, highlighting Adnoc's broader strategy to expand its footprint across Africa, the report said.
Adnoc has also been growing its presence in the region through other investments, including a $500 million agreement with BP to develop a gas project in Egypt, the report added.
South Africa's fuel retail sector has seen consolidation in recent years, with Glencore acquiring Chevron's Caltex network and Vivo Energy purchasing Engen, the country's largest station operator, the report noted.
Shell is divesting non-core assets globally, with several firms, including Puma Energy, Sasol, and PetroSA, previously expressing interest in the South African business, according to the report.
has reached out to Shell and Abu Dhabi National Oil Co. for any comments.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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