South African businessman Simphiwe Mehlomakulu is set to gain an ownership interest in Shell’s local fuel network as Abu Dhabi’s state-controlled ADNOC Distribution advances its $1 billion entry into Africa’s largest industrial economy.
ADNOC Distribution and Mehlomakulu’s Reatile Group have signed an agreement under which the South African company will acquire a minority interest in Shell Downstream South Africa.
The agreement will take effect after ADNOC completes its proposed acquisition of the business from Shell South Africa Holdings. Completion is expected in 2027, subject to regulatory approvals and other conditions.
The companies announced Reatile’s selection on August 21.Neither Reatile’s exact ownership percentage nor the amount it will invest has been disclosed.
What the $1 billion transaction includes
