New company to take over Shell’s 600 petrol stations in South Africa

Adnoc Distribution, a petroleum retailer headquartered in the United Arab Emirates, is set to take control of Shell’s petrol stations in South Africa.

The company has entered into a definitive agreement to acquire a minority equity interest in Shell Downstream South Africa (SDSA).

This will allow Adnoc to take control of Shell’s forecourts in South Africa at an implied enterprise value of roughly $1 billion (R16 billion), according to BusinessTech.

The acquisition was proposed in July 2026 and is set to be completed by the end of 2027. It is currently going through customary regulatory processes, subject to the satisfaction of other conditions.

The deal is part of Shell’s broader plans to sell its non-core holdings in South Africa, comprising approximately 600 petrol stations.

The company is instead looking to prioritise operations that sustain long-term oil and gas supplies.

Adnoc, which is based in Abu Dhabi, is the largest fuel supplier in the UAE, and was the preferred bidder for SDSA in 2026.

Shell previously entered negotiations with the Gunvor Group, a multinational energy commodities trading company, but these talks ultimately fell through.

It then entered discussions with Adnoc, though the company had to comply with South Africa’s B-BBEE laws to operate in the country. Adnoc has since partnered with the Reatile Group to meet local BEE requirements.

The deal will make South Africa the fourth country where Adnoc has a presence, joining Egypt, Saudi Arabia, and the UAE.

Most popular petrol stations in South Africa

A study by Lightstone Auto previously found that Engen is the most popular petrol station franchise in South Africa.

The group looked at 600 forecourts around Gauteng, which is home to nearly half of the country’s roughly 8 million registered cars.

It also captured additional data from 5,000 other locations across South Africa, based on motorists’ driving habits.

It found that Engen was the preferred site for 30% of motorists, followed by Shell at 18%, BP at 16%, Sasol at 14%, Astron Energy at 11%, and Total Energies at 9%.

Lightstone also highlighted that petrol stations have become far more than just fuel stops, as they are now the default location where many households stock up on goods.

It noted that forecourts tend to be open far later than traditional storefronts, resulting in convenience-led shopping spikes between 19h00 and 06h00.

Engen is the largest fuel retailer in South Africa with over 1,000 locations. Astron Energy has roughly 850 stations, and Shell has around 600.

TotalEnergies has 550 locations, while BP and Sasol have 500 and 354 sites, respectively.