TAQA Completes Acquisition of SWS Holding

Abu Dhabi National Energy Company (TAQA), one of the largest listed integrated utilities in Europe, Middle East and Africa, on Wednesday announced the completion of its agreement to acquire all outstanding shares of Sustainable Water Solutions Holding Company (SWS Holding) for $460 million.

SWS Holding owns Abu Dhabi Sustainable Water Solutions Company (ADSWS), which was established in 2005, and is the sole entity responsible for wastewater collection and treatment as well as production of recycled water in the Emirate of Abu Dhabi.

ADSWS delivers sustainable water solutions by focusing on resource recovery and water circularity and is regulated by the Department of Energy, operating under the same regulatory framework as other key sectors in TAQA’s portfolio, such as its transmission and distribution businesses (power and water) in Abu Dhabi.

ADSWS has a growing network of approximately 13,000 km of sewer pipelines and a water treatment capacity of approximately 1.3 million cu m per day from 43 plants, with a regulated asset value of approximately $4.76 billion.

SWS Holding expands TAQA’s capabilities in managing water and is highly complementary to its existing portfolio. The transaction will add significant value to the company’s asset base and further enhances TAQA’s highly predictable and secure cash flow profile as well as its long-term earnings.

Global Expansion

Building on its strengths in the UAE, SWS Holding aims to expand internationally as part of its long-term growth strategy, delivering sustainable water solutions to new markets.

Recently, SWS Holding, alongside Marubeni Corporation and Suez, signed a joint development agreement with Uzbekistan’s Ministry of Investment, Industry and Trade and Uzsuvtaminot JSC to develop a wastewater treatment plant in Tashkent, which will be capable of producing 1.5 million cubic metres of treated water per day.

TAQA Group CEO and Managing Director Jasim Husain Thabet, said that by bringing the treated water business into TAQA, alongside with other water activities of production and transmission & distribution, the company will be able to optimise the way it produces, use and reuse water.

“As a company we can now offer an even broader range of utility solutions while we continue to grow here in the UAE and internationally. Adding SWS Holding to our portfolio strongly aligns with our net zero strategy, helping to ensure water security in the UAE while minimising related greenhouse gas emissions through effective wastewater treatment and reuse,” he added.

SWS Holding’s CEO Ahmed Al Shamsi said that being part of TAQA strengthened their position to ensure responsible water use and reuse, supporting the circular economy and promote smart growth here in the UAE and abroad.

“As stewards of sustainable water management, we are a reliable low-carbon water champion and look forward to bringing even more integrated and innovative solutions powered by cutting-edge technology and operational excellence to lead water transformation to our customers,” Al Shamsi added.

Highly Complementary

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.

SWS Holding is highly complementary to TAQA’s existing portfolio and will add approximately $4.36 billion to TAQA’s existing regulated asset value of approximately $20.42 billion.