The expansion aligns with ACWA Power’s strategy to triple its assets under management to $250bn by 2030.
Saudi Arabia-based energy company ACWA Power has signed a share purchase agreement with the regional subsidiary of French utility developer ENGIE to acquire assets located in Bahrain and Kuwait valued at $693m.
The acquisition includes 4.61GW of gas-fired power generation and 1.11 million cubic metres per day of water desalination facilities.
ACWA Power will acquire ENGIE’s shares in four key operating assets.
The Bahrain assets are an 18% stake in the Az Zour North in Kuwait, 45% stakes in both the Al Ezzel and Al Dur projects, and a 30% stake in the Al Hidd facility.
The expansion aligns with ACWA Power’s strategy to triple its assets under management to $250bn by 2030.
ACWA Power CEO Marco Arcelli stated: “This acquisition represents a pivotal milestone for ACWA Power, reinforcing our position as a global leader in water desalination. We consolidate our presence in Bahrain where we are already a reliable supplier of power and water, and we enter Kuwait, where we recently submitted a bid for a large power and desalination plant.
“Re-inforcing our presence in each country will allow us to further develop our people there and localise our operations more, providing safe and reliable supplies to the local communities and industries.”
ACWA Power will also acquire a portfolio of companies responsible for the operation and maintenance of these assets.
This includes a 50% stake in the Az Zour North O&M Company and a 100% stake in the Al Ezzel O&M Company.
ACWA Power chief investment officer Thomas Brostrom stated: “By making its inaugural entry into the Kuwaiti market through the acquisition of a stake in the Az-Zour North Facility, ACWA Power has achieved a significant milestone in its strategic efforts to expand its presence within the regional energy and water desalination sector.
Goldman Sachs Saudi Arabia served as sole financial advisor for the transaction, while King & Spalding acted as legal advisor to ACWA Power.
