ACWA Power Buys ENGIE’s Bahrain & Kuwait Assets for $693M

Acwa Power obtained control over Bahrain and Kuwait power assets from the ENGIE regional subsidiary through a new share purchase agreement for $693 million. Through this agreement ACWA Power expands its regional position in energy production along with water desalination and gains substantial operational capacity.

Through the acquisition ACWA Power obtains 4.61GW of gas-fired power generation and 1.11 million cubic meters per day desalination capabilities. Through the deal ACWA Power obtained control of the operational assets from ENGIE including a 18% interest in Az Zour North in Kuwait along with a 45% ownership of Al Ezzel and Al Dur projects in Bahrain and a 30% stake in Al Hidd. The acquisition includes the purchase of operation and maintenance company holdings namely Az Zour North O&M Company at 50% stake and full ownership of Al Ezzel O&M Company.

ACWA Power implements this strategic acquisition to fulfill its objective of managing $250 billion worth of assets during the upcoming decade. To complement its position as a leading power and water supplier in Bahrain the company is now executing its entry into Kuwait by submitting a recent large-scale proposal for power and desalination operations.

ACWA Power CEO Marco Arcelli described the acquisition as a “pivotal milestone” because it helps the company build a stronger regional footprint and better operational capabilities for local markets. Chief Investment Officer Thomas Brostrom confirmed entering into the Kuwaiti market represents a substantial advancement in the expansion plans of ACWA Power.

The transaction received sole financial advisory from Goldman Sachs Saudi Arabia together with legal services delivered by King & Spalding.