South African diversified investment holding company Reatile Group and ADNOC Distribution, part of Abu Dhabi’s State-owned energy group ADNOC, have announced that they have agreed to a long-term strategic relationship with a definitive agreement by which Reatile will acquire a minority shareholding in Shell Downstream South Africa (SDSA). This agreement will come into force once ADNOC Distribution has completed its acquisition of SDSA from Shell South Africa Holdings.
ADNOC’s 100% acquisition of SDSA, announced in July, is valued at some $1-billion, before adjustments for net debt and working capital. The deal is subject to regulatory approvals and the meeting of the conditions precedent and the closing conditions. All being well, the deal is expected to be concluded next year.
“Our partnership with ADNOC Distribution represents a significant milestone for Reatile Group and reflects the confidence placed in our 23-year track record of investing in, operating and growing energy businesses across South Africa,” affirmed Reatile Group founder and chairperson Simphiwe Mehlomakulu. “By combining ADNOC Distribution’s global expertise and financial strength with Reatile’s deep local market knowledge and long-standing industry relationships, we are well positioned to support the continued growth of this strategic business, create sustainable value for stakeholders and contribute to South Africa’s energy security and economic development.”
