Shearman & Sterling LLP
07/01/2022 | Press release | Distributed by Public on 07/01/2022 12:44
ADNOC’s Agreement to Buy Masdar Stakes
NewsJuly 01, 2022
ADNOC's Agreement to Buy Masdar Stakes
Shearman & Sterling advised Abu Dhabi National Oil Company (ADNOC) on entering into a binding agreement with Abu Dhabi National Energy Company (Taqa) and Mubadala Investment Company (Mubadala), that will see Taqa and ADNOC acquire stakes in Masdar from Mubadala (subject to the completion of regulatory approvals).
Under the binding agreements, Taqa will acquire a 43 per cent controlling stake in Masdar's renewables business, with Mubadala retaining a 33 per cent interest and ADNOC owning the remaining 24 per cent interest. The transaction puts a value for the new Masdar joint ventures at about $1.9 billion on a 100 per cent equity basis.
ADNOC will hold a 43 per cent controlling stake in Masdar's new green hydrogen joint venture, Mubadala will retain a 33 per cent interest and Taqa will hold a 24 per cent share.
The partnership, announced last year by President Sheikh Mohamed, aims to create one of the largest renewable energy companies in the world and a pioneer in green hydrogen under the Masdar brand. Masdar, which currently operates in more than 30 countries with a total investment of about $20 billion, aims to be a clean energy powerhouse.
This year Masdar has signed agreements to explore and develop renewable energy and green hydrogen projects with a combined capacity of more than 10 gigawatts. As the United Arab Emirates (UAE) prepares to host COP28 in 2023, this strategic partnership positions Abu Dhabi and the UAE at the forefront of the energy transition.
The Team