ADNOC Distribution is implementing an agreement to acquire 15 service stations in Saudi Arabia, worth 36.7 million dirhams
ADNOC Distribution announced today the implementation of a final agreement to acquire 15 service stations in the Kingdom of Saudi Arabia, confirming its commitment to its strategy to expand its business in the Kingdom, which is the largest retail fuel market in the Gulf Cooperation Council countries.
The addition of these new terminals highlights the long-term smart growth strategy aimed at becoming ADNOC Distribution also the leading operator in the fuel retail sector in the Kingdom of Saudi Arabia.
This process is expected to generate more value for the company, resulting from increased fuel margins and an integrated approach to managing retail and non-fuel fuel products.
The deal is valued at 36.7 million dirhams, and the acquisition is subject to certain conditions that include obtaining regulatory approval.
The new service stations are located in the Eastern Province, in areas that serve both highway travelers and residential neighborhoods alike.
The new stations will be refurbished according to ADNOC Distribution's branding standards and will provide customers with high-quality refueling and retail services, including retail stores, which represent a unique and proven investment opportunity that has ensured the resounding success of the company in the UAE.
Ahmed Al Shamsi, Acting CEO of ADNOC Distribution said: “The expansion of our presence in the Kingdom of Saudi Arabia represents a milestone for our company and part of our strategy for profitable growth, as we view this expansion as a natural development since we opened our first stations there in 2018, and we look forward to "We will increase our presence significantly in the coming years. This is the first of many service stations that we intend to open, so that the Kingdom of Saudi Arabia will become a major strategic market for us, while making ADNOC service stations a destination for everyone in Saudi Arabia."
ADNOC Distribution opened its first station in the Kingdom of Saudi Arabia 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 afterwards.
With the conclusion of this deal by ADNOC Distribution Company to acquire the stations, the total number of its stations in the Kingdom will reach 17.
Al Shamsi added: “The Kingdom of Saudi Arabia is the largest market in the Gulf Cooperation Council countries, and the Saudi market is full of many opportunities for many companies, especially those with great experience in the fuel sector as our company, which will allow us to expand in the future, and we are currently discussing many One of the opportunities that will allow us to expand our network in the Kingdom. This large and diversified market gives us the opportunity to benefit from that, and to provide services to residential and industrial areas in the Kingdom of Saudi Arabia. "
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