Shareholders of the Abu Dhabi National Energy Company (TAQA) approved a deal to combine assets with Abu Dhabi Power Corporation’s (ADPower), creating one of the largest utilities companies in the GCC, UAE state news agency WAM reported Wednesday.
The deal will see ADPower transfer the majority of its water and electricity, transmission, and distribution assets to TAQA, leaving the company with majority stakes in almost all power and water generation plants in the UAE. The deal is scheduled to close in the third quarter of 2020.
TAQA is owned by ADQ, formerly Abu Dhabi Developmental Holding Company.
“This is a transformational deal for TAQA … The larger company will benefit from its extensive network to capitalize on growing demand for power and water, while also playing a key role in supporting the UAE’s transition to clean energy as part of the country’s Energy Strategy 2050,” said CEO of TAQA Saeed Hamad al-Dhaheri.
TAQA will become a top-10 integrated utilities player in the Europe, Middle East, and Africa (EMEA) region, and it will be one of the largest listed companies in the UAE, based on market capitalization, WAM reported.
“This transaction pools the considerable resources of Abu Dhabi’s utilities sector to create significant added value, profitable growth and financial stability … We are creating a powerful industry heavyweight,” said CEO and Managing Director of ADPower Jasim Husain Thabet.
The company will boast a portfolio including more than one million customers in the UAE and operations in 11 countries. The company will be able to produce 320 billion gallons of water per year and its electricity generation capacity will be 23 gigawatts, enough to power 3.5 million homes.
“The energy and power sector remains core to Abu Dhabi’s economy, and is still one of its most strategically important and most potent as a generator of revenue and a multiplier of value. Measured by scale and scalability, technical expertise and earning ability, the new combined entity is a true regional utilities champion, and a powerhouse for Abu Dhabi’s future,” said CEO of ADQ, Vice Chairman of ADPower, and Board Member of TAQA, Mohamed Hassan Alsuwaidi.