Marubeni buys $140m UAE power plant stake
Abu Dhabi, October 1, 2007
Marubeni has agreed to buy a stake in a power company in the UAE for $140 million, the seller said, the Japanese trading house's second acquisition in a UAE utility.
Marubeni will buy 40 per cent of Emirates CMS Power, which operates the Taweelah A2 power and water desalination plant in Abu Dhabi, Abu Dhabi National Energy (Taqa) said in a statement.
Taqa owns 94 per cent of the plant and state-owned Abu Dhabi Water & Electricity Authority the rest.
Marubeni owns 14 per cent of another power project in Abu Dhabi, Taweelah B.
Demand for power in the region is surging on population growth and commercial and industrial expansion.
'Given the synergy Marubeni has with other operations in Abu Dhabi and to restore equilibrium to privatisation, Taqa sold 40 percent,' Taqa chief executive officer Peter Barker-Homek said.
Abu Dhabi has generally allowed foreign power developers such as Marubeni, International Power and GDF-Suez SA to own 40 per cent of individual power projects.
'It is a signal to foreign investors that Abu Dhabi wants foreign investment,' Barker-Homek said.
Taqa agreed in February to pay US utility CMS Energy $900 million for power assets in the Middle East, North Africa and India, including CMS's stake in Taweelah A2 and a second project in Abu Dhabi. Reuters