A&O Shearman advises Engie on the divestment of assets to ACWA Power

A&O Shearman is advising ENGIE – a leader in sustainable energy supply and services – on the divestment of its power generation and water desalination assets in Bahrain and Kuwait to ACWA Power.

The move aligns with ENGIE’s commitment to achieve net zero by 2045. Headquartered in France, ENGIE has been a significant player in the GCC with its offer of efficient gas-fired power solutions, desalinated water production, district cooling and battery storage.

Paris-based A&O Shearman partner Alexandre Ancel, who led on the deal along with partner David Foster and counsel Harsha Kumar in Dubai, said: “We were delighted to support ENGIE on this deal as they move forward with their plans towards decarbonisation.”

In Kuwait, ENGIE will divest its 17.5 per cent shareholding in the 1.5GW capacity gas and desalination plant in Az Zour North as well as its 50 per cent stake in the associated O&M company.

In Bahrain the divested assets consist of Al Dur: 1.2 GW capacity and 48 MIGD, 45 per cent share; Al Ezzel: 0.9 GW capacity, 45 per cent share; Al Ezzel O&M: 100 per cent owned by ENGIE, ensuring operations and maintenance of Al Dur and Al Ezzel facilities. Al Hidd: 0.9 GW capacity and 90 MIGD, with ENGIE holding a 30 per cent share (integrated O&M company).

The completion of the transaction remains subject to customary regulatory approvals and closing conditions including anti-trust, foreign investment and third party transfer consents in each of the countries.

The A&O team was led by Alexandre Ancel (partner, Paris), David Foster (partner, Dubai) and Harsha Kumar (counsel, Dubai), with key support from Julie Parent (senior associate, Paris), Kasam Kiani (senior associate, Abu Dhabi), Astrid Achard (associate, Paris), Nicola Toomey (associate, Dubai) and Alina Bushnaq (paralegal, Abu Dhabi).

Meanwhile Florence Ninane (partner, Paris) and Arianna Fletcher (associate, Milan) provided advice on anti-trust matters. Joe Clinton (partner, Dubai), Louie Gough (associate, Dubai) and Kasipeh Adu (associate, Dubai) provided advice on debt finance and projects related matters. Lydia Challen (partner, London) and Lachlan Black (associate, London) provided tax advice. And a team of legal professionals in Belfast provided support on vendor legal due diligence (as well as sell side data room management).