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Correction: Adnoc Distribution Agrees to Sell Minority Stake in Shell Downstream South Africa to Reatile

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(Corrects headline to reflect Adnoc has agreed to sell a stake in Shell subsidiary to Reatile Group.)

Adnoc Distribution, a subsidiary of UAE-based energy giant Adnoc, on Thursday said it has reached a long-term broad-based black economic empowerment agreement related to its proposed acquisition of Shell (SHEL) Downstream South Africa from Shell South Africa Holdings.

As part of the agreement, diversified investment holding Reatile Group will acquire a minority interest in Shell Downstream South Africa following completion of Adnoc Distribution's acquisition.

Reatile Group focuses on addressing Africa's energy challenges and has invested in, operated, managed and grown energy businesses alongside major South African and global energy companies over the past 23 years, Adnoc Distribution said in a statement.

The proposed acquisition is subject to regulatory approvals and other customary closing conditions.

In July, Adnoc Distribution disclosed that it has agreed to acquire a 100% stake in SDSA in a transaction with an implied enterprise value of about $1 billion before adjustment for net debt and working capital.

A 28% stake in SDSA was to be sold to a local empowerment partner and Employee Stock Option Plan after the completion of the deal, expected in 2027, Adnoc Distribution said in its statement then.

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