France-based electric utility company Engie has acquired a 40 percent stake in National Central Cooling Company (Tabreed) from Mubadala Investment Company.
With this acquisition, Engie will become Tabreed's key shareholder, along with Mubadala, which will retain a 42 percent stake in Tabreed following the transaction, subject to regulatory approval.
As long-term shareholders in the company, Engie and Mubadala have also agreed certain cooperation arrangements that are designed to support Tabreed's growth strategy.
Remarking on the deal, Isabelle Kocher, chief executive officer of Engie, said: "Engie will support Tabreed's growth by contributing to delivering massively and efficiently low-carbon energy, building on Engie's 30-year experience in the GCC countries and world-class expertise in district energy.
"District energy networks are the fastest and most efficient ways to decarbonise dense areas and supply them with clean, renewable energy. As such, they can be seen as backbones of sustainable cities.
"This acquisition is therefore a major step forward in the implementation of Engie’s strategy to become leader of the energy transition, by focusing especially on low-carbon solutions."
Engie is an independent power and desalination water (IWPP) developer and producer in the GCC, with a total gross portfolio of 30 GW power and over 4.5 millions of cubic meters per day of desalination water production in operation.
By Rajiv Ravindran
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