ADNOC to bring in Reatile Group as minority investor in Shell South Africa business

ADNOC Distribution has agreed to sell a minority stake in Shell Downstream South Africa (SDSA) to Reatile Group. This follows ADNOC's definitive agreement to acquire 100% of SDSA from Shell South Africa Holdings for an implied enterprise value of approximately $1 billion, with completion expected in 2027. The transaction involves a long-term Broad Based Black Economic Empowerment Agreement, aiming to transfer a 28% stake to local empowerment partners and an ESOP.

By Staff Writer

ADNOC Distribution has agreed to sell a minority stake in Shell Downstream South Africa (SDSA) to Reatile Group after completing its acquisition of the business in 2027.

ADNOC Distribution and Reatile Group have signed a long-term Broad Based Black Economic Empowerment Agreement for the proposed acquisition of SDSA from Shell South Africa Holdings.

In July, ADNOC Distribution entered into a definitive agreement to acquire 100% of the share capital of SDSA in a deal with an implied enterprise value of about $1 billion.

While details of Reatile Group’s stake and financial commitments have not been disclosed, ADNOC Distribution earlier said it expects to sell a 28% stake in SDSA to a local empowerment partner and an Employee Stock Option Plan (ESOP).

(Writing by Bindu Rai, editing by Seban Scaria)

bindu.rai@lseg.com