TAQA strikes definitive agreement to acquire SWS Holding

By Shilpa Annie Joseph, Official Reporter
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TAQA to acquire SWS Holding
Rep. Image | Courtesy: TAQA

Abu Dhabi National Energy Company (TAQA) has entered into a definitive agreement to acquire all outstanding shares of Sustainable Water Solutions Holding Company (SWS Holding) for $462.91 million (AED1.7 billion).

The establishment of SWS Holding was announced in May 2023 to deliver sustainable water solutions by focusing on resource recovery and water circularity that will benefit industries and communities.

The newly created SWS Holding took ownership of Abu Dhabi Sustainable Water Solutions Company (ADSWS), formerly known as Abu Dhabi Sewerage Services Company (ADSSC), the main entity behind all wastewater collection, treatment, and reuse in the Emirate of Abu Dhabi.

Jasim Husain Thabet Image
Jasim Husain Thabet
Group CEO & MD

“This transaction is a logical extension of our regulated asset base into wastewater networks and treatment, which in Abu Dhabi is subject to the same structure of regulation and the same principles as our existing power and water transmission and distribution business. The new business will substantially boost our regulated asset base and stable long-term earnings. The efficient management of water will play a key role in enabling the UAE to reduce greenhouse gas emissions. By bringing the management of recycled water together with TAQA’s water desalination activity and our recycled water network, we can do even more to support the net zero target by 2050.”

The addition of SWS Holding’s specialized solutions to TAQA’s comprehensive portfolio will create a vertically integrated player with strong capabilities in delivering high-quality water treatment solutions as well as a shared commitment to operational efficiency and customer service excellence.

Furthermore, the transaction is expected to generate significant synergies which will create value for TAQA and its shareholders. ADSWS will operate under and benefit from the same regulatory controls set by the Abu Dhabi Department of Energy (DoE) that govern TAQA’s existing UAE transmission and distribution businesses.

Mr. Ahmed Al Shamsi, SWS Holding’s Chief Executive Officer and Managing Director, said that, “The prospect of becoming part of TAQA as a national champion with great sustainability aspirations is compelling and will allow us to leverage our combined strengths, fostering increased collaboration and delivering improved services in sustainable water management.”

“SWS Holding has embarked on its journey with a firm commitment to providing sustainable water solutions that will not only benefit our customers and local communities but also help protect our planet and its ecosystems,” Mr. Al Shamsi added.

The transaction is expected to complete this year, subject to the successful and timely completion of necessary transaction requirements, including obtaining regulatory and relevant third-party approvals, as per the statement.

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