27 June 2022
Clifford Chance advises TAQA on its acquisition of a controlling stake in Masdar
Leading international law firm Clifford Chance is advising Abu Dhabi National Energy Company (TAQA) in connection with its landmark transaction with Abu Dhabi National Oil Company (ADNOC) and Mubadala Investment Company (Mubadala) that will see TAQA and ADNOC acquire stakes in Masdar from Mubadala.
Subject to obtaining the necessary regulatory approvals, TAQA will acquire a 43% controlling stake in Masdar’s renewables business with Mubadala retaining a 33% interest, and ADNOC owning the remaining 24% interest. Meanwhile, ADNOC will hold a 43% controlling stake in Masdar’s new green hydrogen joint venture, Mubadala will retain a 33% interest and TAQA will hold a 24% effective stake.
The transaction, announced last year, puts a value for the new Masdar joint ventures at approximately AED 7 billion (USD 1.9 billion) on a 100% equity basis, and aims to create a global clean energy powerhouse that consolidates the renewable energy and green hydrogen efforts of TAQA, Mubadala and ADNOC under the Masdar brand. Once complete, TAQA will have exceeded its 2030 targets of having more than 30% of its generation capacity from renewable energy.
The Clifford Chance team advising TAQA was led by partner Mohammed Al-Shukairy, Regional Managing Partner, Middle East, together with support from a core team comprising counsel Daniel Boyle, senior associate Rezwan Azam, associate Ahmed Shafiek and trainee Shannon Burke. Partner Richard Parris and counsels Jeremy Barker and Inaamul Laher provided additional specialist projects and construction advice.
In reference to the transaction, Mohammed comments: "We are delighted to have supported TAQA on this highly strategic transaction. The transaction further illustrates TAQA and the UAE’s vision for and commitment to renewable energy and green hydrogen, ahead of hosting COP 28.”