Two energy companies in Abu Dhabi have collaborated to form what they are calling one of the largest integrated utility companies in Europe, the Middle East and Africa (EMEA).
Abu Dhabi National Energy Company (TAQA) and Abu Dhabi Power Corporation (ADPower) have closed an infrastructure and stake merger and acquisition transaction.
TAQA has acquired ADPower’s energy and water generation, transmission and distribution assets in exchange for 98.60% of share capital.
TAQA now also owns all of Abu Dhabi’s power and water transmission and distribution companies in addition to its existing international assets in Canada, Ghana, India, Iraq, Morocco, the Netherlands, Oman, Saudi Arabia, the UK and the US.
The acquisition makes TAQA the third-largest publicly traded company by market capitalisation in the United Arab Emirates and amongst the top ten integrated utility companies in EMEA by regulated assets, according to a statement.
TAQA currently has 23GW of power generation capacity globally and 916 MIGD of water desalination capacity, of which 1.4GW is from renewable sources. TAQA also has a further 4.4GW and 200 MIGD under development, including 2GW from renewable sources.
The deal increases TAQA’s UAE assets with 2 power and water generation plants in operation.
The acquisition deal had been approved by the board of directors of ADPower in February 2020 and by TAQA’s shareholders in April 2020.
H.E. Mohamed Hassan Alsuwaidi, Chairman of TAQA, said: “The successful consolidation of Abu Dhabi’s power and water assets has created a true national energy champion that is well-positioned to spearhead the transformation of the utility industry. TAQA’s strong balance sheet, predictable income, access to global capital markets and deep industry expertise enables it to play an active role in the UAE’s diversification strategy, putting a strong emphasis on clean sources.
“The company will invest and deploy new technology to ensure continued reliable and efficient supply of power and water and additional sustainable capacity to meet the demands of the UAE economy.”