Shell plc (LSE:SHEL) is in advanced negotiations with Abu Dhabi National Oil Company (ADNOC) P.J.S.C. (ADNOC) to sell its fuel retail business in South Africa, after announcing plans to exit the market in 2024. The discussions center on the sale of Shell?s network of roughly 600 fuel stations, a transaction that could be valued at about $1 billion according to a Bloomberg News report. If completed, the deal would give ADNOC an estimated 10% share of South Africa?s fuel retail market.
ADNOC is said to have emerged as the preferred buyer after previous talks between the seller and commodities trader Gunvor Group failed to reach an agreement. The timing of the talks comes amid continued volatility in global energy markets, influenced in part by geopolitical tensions in the Middle East. Shell has operated in South Africa for more than a century, but late in 2024 the company disclosed plans to exit its downstream operations in the country as part of a broader portfolio review. The potential sale would mark a significant step in that strategy, allowing Shell to further reduce its exposure to fuel retail in the region.
For ADNOC, the acquisition would align with its longer-term growth ambitions. The energy firm has previously outlined plans to invest $150 billion between 2026 and 2030 to expand its global footprint and meet rising energy demand.
