ADNOC Distribution has reached a ‘definitive agreement’ to acquire 15 service stations in Saudi Arabia.
The move reaffirms its commitment to grow its business in the Kingdom; the largest fuel retail market in the GCC, it said in a statement.
The value of the purchase is expected to reach US$10 million with the new stations seen as central to a long term smart growth strategy to become the leading fuel operator in Saudi Arabia.
Adnoc said it also “sees value creation potential coming from uplift in fuel margins and the company’s integrated approach to managing fuel and non-fuel retail offerings.”
The stations are located in the eastern region of Saudi Arabia and will be re-fitted and re-branded in line with ADNOC Distribution brand standards.
“Expanding our presence in Saudi Arabia is an important milestone for our company and part of our profitable growth strategy,” said Ahmed Al Shamsi, acting CEO, ADNOC Distribution. “We see this expansion as a natural progression since opening our first station in 2018 and look forward to significantly increasing our presence in the coming years.
The deal will be a major boost to Adnoc’s current fuel operation in the region which currently includes a station close to Riyadh and a second in the city of Hofuf within Al Ahsa Governate.
Al Shamsi added: “This is the first announcement of many we intend to make with Saudi being a key strategic market for us as we make ADNOC service stations a destination for all in Saudi.”
According to Al Shamsi, Saudi Arabia is the largest market in the GCC and he sees huge potential for experienced fuel operators like us to consolidate the market and capture further growth.
“We are currently in discussions on a range of opportunities to further build on our network in the country. With such a vast and diverse landscape, we aim to bring our fuel and retail experience to benefit local communities and industrial areas across the Kingdom.”
