A&O advises Mubadala Investment Company on its partnership with TAQA and ADNOC under the Masdar brand

Allen & Overy is advising Mubadala Investment Company (Mubadala) on the sale of stakes in Abu Dhabi Future Energy Company (Masdar) to Abu Dhabi National Energy Company (TAQA) and Abu Dhabi National Oil Company (ADNOC).

The transaction, announced last year by His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, will create a global clean energy powerhouse that consolidates the renewable energy and green hydrogen efforts of TAQA, Mubadala and ADNOC under the Masdar brand.

The transaction values the new Masdar joint ventures at approximately AED 7 billion (USD 1.9 billion) on a 100 per cent equity basis. 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. Meanwhile, 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 effective stake. Together the three partners will supercharge Masdar’s growth and expansion, with each shareholder playing a key role.

The transaction remains subject to the completion of necessary transaction requirements, including obtaining relevant third party and regulatory approvals.

Ibrahim Mubaydeen, managing partner of Allen & Overy in Abu Dhabi, commented, “We are honoured to have supported Mubadala on this landmark transaction, which advances the UAE’s leadership role in the global energy sector. This transaction demonstrates the country’s commitment to the environmental safe-guarding of future generations.”