ADNOC Distribution (ADNOCDIST.AD): Takeaways from the SDSA acquisition management call: Regulated South African fuel market to

Research evidence excerpt

ADNOC Distribution (ADNOCDIST.AD): Takeaways from the SDSA acquisition management call: Regulated South African fuel market to

Equity Research

7 July 2026 | 11:23PM GST

ADNOC Distribution (ADNOCDIST.AD): Takeaways from the SDSA

acquisition management call: Regulated South African fuel market to

ADNOC Distribution’s management team held a conference call today (July 7) to Faisal AlAzmeh, CFA

+971(4)376-3476 |

discuss the proposed acquisition of SDSA in South Africa. faisal.alazmeh@gs.com

Goldman Sachs International

Bottom line: (i) announcement of a transaction that, albeit broadly anticipated by Roman Reshetnev

+971(4)376-3423 |

the market, is mechanically accretive and a strategic fit; (ii) South Africa’s market roman.reshetnev@gs.com

importance as a key de-risking feature of the deal, given a regulated fuel market

Swarnilee Patraenvironment that broadly protects per litre margins; (iii) a scaled platform where +1(332)245-7700 |

ADD’s existing capabilities across NFR, supply and commercial optimization can swarnilee.patra@gs.comGoldman Sachs India SPL

easily be transferred; and (iv) a transaction that is structured to preserve control,

brand continuity and financial discipline.

We think the proposed acquisition of SDSA would strengthen the medium-term

equity story for ADNOC because it would add a larger international platform to a

business that was already screening positively on domestic resilience, NFR

growth and disciplined M&A. Prior management commentary had already

highlighted resilient retail demand, NFR outgrowth, 15%+ IRR discipline and a

willingness to pursue inorganic growth where returns and margin resilience are

visible. The SDSA acquisition would scale ADD’s station network by +55%, the

convenience footprint by +70%, and grow total volumes by +20%.