Abu Dhabi's Taqa buys Spanish water company for $1.2b

Dubai: The Abu Dhabi power and water company Taqa has just entered a $1 billion plus deal.

The company is buying 100% interest in Spain's GS Inima, a specialist in water treatment and water desalination, from GS Engineering & Construction. The transaction is valued at about $1.2 billion.

The GS Inima purchase will 'significantly accelerate' Taqa’s 'international water growth strategy'.

"Together, we will accelerate our ambition to become a leading international water player, expanding our reach and capabilities across strategic growth markets in the Middle East, Europe, and the Americas," said Jasim Husain Thabet, Taqa’s Group CEO and Managing Director.

"The acquisition marks a pivotal step in Taqa’s strategy to establish a world-class, integrated global water platform," said a statement.

The Madrid-based GS Inima has around 50 active projects, including 30 long-term public-private partnerships (PPPs).

This includes a portfolio of water desalination and water treatment, and with a presence in 10 countries, including the US, Oman, Brazil and Mexico.

"The company provides Taqa with immediate access to high-growth markets across Europe, Latin America, and Asia, reinforcing its position as a leading international utility," the statement added.

On ADX, the Taqa stock is trading at Dh3.35, with the year-to-date showing it's 1.76% down. But in the last 6 months, the stock's zoomed 7.72% higher.

The $1 billion plus deal for GS Inima is expected to bring 'strong additions' to Taqa's EBITDA on closing. In 2024, GS Inima had revenues of 389 million euros and an EBITDA of 106 million euros.

"The majority of the company’s portfolio operates under long-term concession agreements that include inflation-adjustment mechanisms, offering stable and predictable cash flows," said a statement.

Just in the last 12 months, Taqa took 'significant steps to broaden its water capabilities at home and abroad'.

The group expanded its presence in wastewater and recycled water through the acquisition of Sustainable Water Solutions Holding, which is now operating as Taqa Water Solution.