Saudi Arabia’s ACWA Power has agreed to acquire power and water assets from the regional subsidiary of French utility developer Engie in Bahrain and Kuwait for $693 million, the company announced on Wednesday.
This acquisition includes 4.61 gigawatts of gas-fired power generation capacity and 1.11 million cubic meters (mcm) per day of water desalination facilities, along with related operations and maintenance companies in Kuwait and Bahrain, ACWA Power said in a statement.
As part of the deal, ACWA Power will acquire Engie’s shares in the four key operating assets, including an 18% stake in the Az Zour North in Kuwait, alongside 45% stakes in both the Al Ezzel and Al Dur projects, as well as a 30% stake in the Al Hidd facility, all situated in Bahrain, the statement added.
ACWA Power will also acquire a portfolio of companies responsible for the operation and maintenance of the four assets, according to the statement.
Completion of the transaction is subject to customary regulatory and other stakeholder approvals.
Commenting on the deal, Marco Arcelli, CEO of ACWA Power, described the acquisition as “a pivotal milestone” that strengthens the company’s 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,” Arcelli added.
