New Owners Lined Up for Shell Petrol Stations in South Africa as Adnoc, Gunvor Lead the Race

Shell’s presence in South Africa’s fuel retail landscape may soon change hands, with reports indicating that Abu Dhabi’s Adnoc and Swiss commodities trader Gunvor are among the top contenders to acquire the energy giant’s downstream assets.

According to various reports over the weekend, the two firms have been shortlisted to buy Shell’s South African fuel retail operations—valued at approximately $1 billion (around R18.82 billion). The deal includes a network of around 600 petrol stations, along with trading operations in Africa’s most industrialized economy.

Shell’s divestment is part of a broader global strategy to streamline its business and concentrate on higher-yield markets. The sale is also seen as an opportunity for major trading firms to secure stable demand by directly owning the infrastructure needed to distribute fuel products.

While neither Adnoc nor Gunvor has officially confirmed the reports, an Adnoc Distribution spokesperson stated, “Adnoc Distribution regularly reviews opportunities for domestic and international growth, but we don’t comment on market speculation.”

Other companies that had previously shown interest—including Puma Energy (owned by Trafigura), Sasol, and PetroSA—are reportedly no longer in the running.

If successful, the deal would hand the buyer control of about 10% of South Africa’s fuel station market—making it a significant force in the local energy sector.

This potential sale follows a wave of similar acquisitions in the country. Glencore took over Chevron’s Caltex-branded stations a few years ago, and more recently, Vitol Group’s Vivo Energy bought Engen, South Africa’s largest petrol station chain. Shell itself exited refining in the country in 2022, selling its majority stake in the country’s largest refinery to the State-owned Central Energy Fund.

For both Adnoc and Gunvor, the move would mark a strategic expansion into the Southern African region. It would also be in line with the trend of Middle Eastern oil giants like Saudi Aramco and Adnoc building out their global trading and distribution networks.

While discussions are still ongoing, and there’s no guarantee the transaction will close, the deal—if completed—could significantly reshape the competitive landscape of South Africa’s fuel retail market.

{Source: IOL}

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