Shearman & Sterling advised Abu Dhabi National Oil Company (ADNOC) on a binding agreement with Abu Dhabi National Energy Company (TAQA) and Mubadala Investment Company (Mubadala), that will see ADNOC and TAQA acquire stakes in Abu Dhabi Future Energy Company (Masdar) from Mubadala.
Under this agreement, ADNOC will acquire a 24 per cent interest in Masdar’s renewables business, with TAQA acquiring a 43 per cent interest and Mubadala retaining a 33 per cent interest.
ADNOC will also hold a 43 per cent controlling interest in Masdar’s new green hydrogen joint venture, Masdar Green Hydrogen, with Mubadala and TAQA (indirectly via Masdar) owning the remaining 33 per cent and 24 per cent interests, respectively. This transaction puts a value for these new Masdar joint ventures at approximately $1.9 billion on a 100 per cent equity basis.
The partnership, announced last year by President His Highness Sheikh Mohamed bin Zayed Al Nahyan, aims to create one of the largest renewable energy companies in the world and a pioneer in green hydrogen under the Masdar brand.
Masdar currently operates in more than 30 countries with a total investment of about $20 billion.
The deal is subject to customary conditions, including third party and regulatory approvals.