Home UAE Abu Dhabi UAE’s TAQA confirms talks with Naturgy shareholders on takeover The Abu Dhabi-listed firm said there was no guarantee a deal would happen and, if it were to, under what terms by Gulf Business April 18, 2024 Image credit: Supplied TAQA Group, also known as Abu Dhabi National Energy Company, has confirmed talks with the three largest shareholders of Naturgy over a possible takeover of the Spanish energy firm. “TAQA confirms it is in discussions with Criteria Caixa in relation to potential cooperation in relation to Naturgy,” the Abu Dhabi utility giant said in a bourse filing on Wednesday. The group also said that it is in talks with CVC and GIP, each owning more than 20 per cent of Naturgy with a combined value of some $9bn, to acquire their shares in Naturgy. The Abu Dhabi-listed firm said there was no guarantee a deal would happen and, if it were to, under what terms. It also added it had not approached Naturgy directly. Founded in 2005, TAQA plans to invest Dhs75bn by 2030 to achieve its ambitious expansion programme. This is comprised of a Dhs40bn expenditure on UAE-based transmission and distribution networks while the remaining Dhs35bn is allocated for the generation business. The firm aims to deliver 150 gigawatts (GW) of gross power generation by 2030, of which 100 GW is renewable capacity through Masdar. It also plans to reach a net power capacity of 50 GW by the end of the decade and a water generation capacity of 1,300 MIGD imperial gallons per day (MIGD), with two-thirds of this capacity coming from efficient and low carbon reverse osmosis (RO) technology. The utility giant’s annual capital expenditure was Dhs5.1bn in 2023, a 34 per cent increase from the previous year as project execution picked up pace in the group’s transmission and distribution segment. TAQA posted Dhs16.7bn in full-year net income, an increase of Dhs8.6bn, driven by a one-off gain of Dhs10.8bn recognised on the acquisition of a 5 per cent shareholding in ADNOC Gas. The company’s net income excluding these one-off items came in at Dhs7bn, down 13 per cent from a year earlier due to a lower contribution from its oil and gas business. Read: TAQA Group posts Dhs16.7bn in full-year net income