ACWA Power Expands Regional Footprint with $693 Million Acquisition from ENGIE

ACWA Power, a global leader in water desalination and energy transition, has signed a Share Purchase Agreement (SPA) with ENGIE’s regional subsidiary to acquire assets worth $693 million. The acquisition includes 4.61GW of gas-fired power generation capacity and 1.11 million cubic meters per day of water desalination facilities across Kuwait and Bahrain.

As part of the agreement, ACWA Power will take over ENGIE’s stakes in four key operational assets—an 18% stake in Az Zour North (IWPP) in Kuwait, 45% in both Al Ezzel (IPP) and Al Dur (IWPP) projects, and 30% in Al Hidd (IWPP) in Bahrain. The deal also includes the acquisition of operation and maintenance companies, namely a 50% stake in Az Zour North O&M Company and a full 100% stake in Al Ezzel O&M Company. The transaction is subject to regulatory and stakeholder approvals.

Strengthening Market Presence

Commenting on the acquisition, ACWA Power CEO Marco Arcelli emphasized the strategic importance of this move. “This acquisition reinforces our position as a global leader in water desalination. We are consolidating our presence in Bahrain, where we are already a reliable supplier of power and water, and entering Kuwait, where we recently submitted a bid for a large power and desalination plant,” he said.

Thomas Brostrom, Chief Investment Officer of ACWA Power, highlighted the company’s expansion strategy. “With our first entry into the Kuwaiti market through the Az Zour North Facility, we have achieved a significant milestone in strengthening our regional energy and water desalination footprint,” he stated.

The acquisition aligns with ACWA Power’s broader strategy of tripling its assets under management to $250 billion by 2030.

Goldman Sachs Saudi Arabia acted as the sole financial advisor, while legal advisory was provided by King & Spalding.