Energy giant Shell is reportedly close to completing a deal worth nearly $1 billion to sell its fuel station business in South Africa to a unit of Abu Dhabi National Oil Company (ADNOC). The proposed transaction marks another step in Shell’s strategy to streamline its global operations and focus more on high-return energy projects.
The sale includes a large network of retail fuel stations and related commercial assets across South Africa. If finalized, the acquisition would significantly expand ADNOC’s international downstream presence and strengthen its footprint in Africa’s energy market.
Industry analysts say the agreement reflects growing investment by Middle Eastern energy companies in overseas fuel distribution businesses as they seek to diversify beyond traditional oil production. South Africa remains one of the continent’s largest fuel markets, making the assets attractive to international investors.
The transaction is expected to undergo regulatory review before receiving final approval. Both companies are likely to continue working with employees, customers, and local partners throughout the transition process to ensure business continuity.
Shell has been reshaping its global portfolio by selling selected retail and downstream assets while investing more heavily in natural gas, renewable energy, and low-carbon technologies. Meanwhile, ADNOC continues expanding its global investments as part of its long-term growth strategy. The final terms and closing date of the deal are expected to be announced after all necessary approvals are obtained.