TAQA, ADNOC & Mubadala sign binding deals for Masdar Stake acquisition

By Arya M Nair, Official Reporter
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Abu Dhabi National Energy Company (TAQA), Abu Dhabi National Oil Company (ADNOC) and Mubadala Investment Company (Mubadala) have entered into binding agreements for TAQA and ADNOC to purchase stakes in Abu Dhabi Future Energy Company (Masdar) from Mubadala.

This is a significant move toward completing the transaction that His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, announced late last year. The partnership aims to build a global clean energy powerhouse by combining TAQA, Mubadala, and ADNOC’s renewable energy and green hydrogen efforts under the Masdar brand.

The transaction puts a value for the new Masdar joint ventures at approximately $1.9 billion on a 100 percent equity basis. The binding agreements will see TAQA acquire a 43 percent controlling stake in Masdar’s renewables business with Mubadala retaining a 33 percent interest, and ADNOC owning the remaining 24 percent interest.

Meanwhile, ADNOC will hold a 43 percent controlling stake in Masdar’s new green hydrogen joint venture, Mubadala will retain a 33 percent interest and TAQA will hold a 24 percent effective stake. As part of the deal, TAQA will contribute its rights to a minimum 40 percent share in future Abu Dhabi renewable projects and green hydrogen projects.

Jasim Husain Thabet
Jasim Husain Thabet Group CEO & MD

“Today’s signing of binding agreements for this transaction demonstrates how TAQA has firmly established itself as a low carbon power and water champion. Once completed, this transaction TAQA will exceed its 2030 targets of having more than 30 percent of its generation capacity from renewable energy and will accelerate our future growth plans as the demand for renewable power and green hydrogen projects significantly increases. Working closely with Mubadala and ADNOC we will transform the energy landscape through Masdar, grounded in collaboration and great ambition to drive forward the UAE’s ‘Net-Zero by 2050 Strategic Initiative’.”

Mr. Khaled Salmeen, Executive Director of the Downstream Industry, Marketing and Trading Directorate, ADNOC commented that “Signing of the binding agreements for this landmark transaction marks another important milestone in ADNOC’s ongoing journey to future proof its operations and grow its new energies business. We are excited to join forces with TAQA and Mubadala, consolidating our combined efforts to create a new national champion for renewable energy and green hydrogen.”

Mr. Musabbeh Al Kaabi, CEO of UAE Investments of Mubadala Investment Company, said that “This milestone is a clear testament to Mubadala’s commitment to realizing the UAE’s long-term sustainability ambitions. Today’s signing with two of Abu Dhabi’s key energy players, ADNOC and TAQA, further cements Mubadala’s responsible investing strategy and is one step closer to delivering on the UAE’s sustainability aspirations.”

Related: Abu Dhabi’s Mubadala & EQT Private Equity to acquire Swedish firm Envirotainer