Saudi Arabia’s ACWA Power has finalized a $693 million deal to acquire ENGIE assets, marking its first entry into Kuwait and strengthening its presence in Bahrain.
This acquisition includes 4.61 GW of power generation and 1.11 million cubic meters per day of water desalination capacity across four projects. Consequently, ACWA Power secures significant stakes in key facilities, enhancing service delivery in both countries.
Marco Arcelli, CEO, highlighted the benefits of consolidating in Bahrain and entering Kuwait, where ACWA recently bid for a major project. Thomas Brostrom added, “This acquisition opens new opportunities to localize operations and deliver reliable utilities”.
Strengthening Contracted Revenue Streams
The acquired assets provide stable, long-term revenue streams, crucial for ACWA Power’s goal of reaching $250 billion in assets by 2030. Goldman Sachs advised on the transaction, ensuring compliance with regulations 6.
Completion of the deal awaits standard approvals from stakeholders and authorities, expected to finalize this year. Once completed, it will position ACWA Power as a pivotal player in Gulf utilities, addressing growing demand for sustainable solutions.
Operational Enhancements
The Saudi company will gain ownership of companies responsible for operating and maintaining these four critical assets. This ensures seamless integration into their existing portfolio, optimizing resource management 9.
Furthermore, obtaining necessary regulatory approvals and other stakeholder consents remains essential before finalizing the deal. Thus, ACWA Power aims to leverage synergies and support regional economic diversification efforts.
By acquiring ENGIE‘s shares, the Saudi firm strengthens its position in Bahrain and establishes itself as a major player in Kuwait’s energy market. Therefore, this strategic move highlights ACWA Power’s commitment to expanding its influence while enhancing service offerings across the Middle East.
