ADNOC Distribution inks pact to acquire 15 service stations in Saudi Arabia for $10 mln

one of ADNOC Distribution's fuel stations

Abu Dhabi National Oil Company for Distribution (ADNOC Distribution) announced today, Dec. 31, 2020, the implementation of a final agreement to acquire 15 service stations in Saudi Arabia.

The company expects the deal to generate more value in its favor resulting from increased fuel margins and an integrated approach to managing retail fuel and non-fuel products.

The deal is worth AED 36.7 million ($10 million), and the acquisition is subject to conditions, including regulatory approvals.

The new service stations are located in the Eastern Province, in areas serving both highways and residential neighborhoods. The new stations will be renovated, in accordance with ADNOC Distribution’s standards, and will provide customers with high-quality fuel and retail services, including convenience stores.

The company is discussing a number of opportunities to further build its networks in the Kingdom, bringing its fuel and retail experience to benefit local communities and industrial areas, the company’s acting chief executive officer, Ahmed Al Shamsi, said. 

ADNOC Distribution’s board of directors issued a resolution on Dec. 30, 2020, approving the acquisition of 15 fuel distribution stations in the Eastern Province, with a purchase value of $10 million.  

The company inaugurated its first station within the Kingdom in December 2018, on the Riyadh-Dammam highway, about 40 kilometers from the capital, and opened its second station in Al-Hofuf, Al-Ahsa Governorate shortly after. With the completion of this deal, ADNOC Distribution will have 17 fuel stations in the Kingdom.