One of South Africa’s most recognisable fuel brands could soon have a new owner. After more than a century of operating in the country, Shell is reportedly close to selling its South African fuel retail business in a deal worth about R16 billion, marking what could be the end of a 124-year era.
According to Bloomberg, Abu Dhabi National Oil Company (Adnoc), through its retail arm, is in advanced negotiations to acquire Shell’s South African service station network. While the deal has not yet been officially signed or announced, reports indicate an agreement could be revealed within days.
If the transaction goes ahead, Adnoc Distribution would take control of around 600 Shell service stations across South Africa, giving it roughly 10% of the country’s fuel retail market. The acquisition would also strengthen the Middle Eastern energy giant’s growing international presence, with investments already stretching across Africa, Europe and the Americas.
For Shell, the proposed sale forms part of its ongoing strategy to streamline its global operations by selling non-core downstream assets and focusing more heavily on large-scale oil and gas production projects.
The move would continue Shell’s gradual withdrawal from parts of its South African business. As previously reported by SA Trucker, the company exited its stake in the country’s largest refinery after operations at the Durban facility ceased in 2022, with the site later being transferred to the Central Energy Fund.
The sale would also be another major shake-up in South Africa’s fuel industry. In recent years, Glencore acquired the Caltex retail network, while Vivo Energy took ownership of Engen, leaving South Africa’s fuel retail landscape looking very different from just a few years ago.
Despite the significance of the deal, industry experts do not expect motorists or transport operators to experience immediate disruption. The service stations are expected to continue operating while any future branding or ownership changes are implemented over time.
Shell’s relationship with South Africa dates back to 1902, when it began supplying oil for lighting and heating before expanding into one of the country’s best-known fuel brands. Today, South Africa is home to 591 Shell retail outlets, making it one of the company’s largest fuel markets globally.
If the transaction is completed, it will mark the end of a remarkable 124-year chapter in South Africa’s fuel retail history, while opening the door to a new player with ambitions to expand its footprint across the African energy market.
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