TAQA Eyes US Expansion with Potential Acquisitions
Deal News | May 27, 2025 | Zawya
Abu Dhabi's state-owned utility company, TAQA, is actively exploring acquisition opportunities in the United States and other markets as part of its ambitious international expansion strategy. Speaking to Reuters, CEO Jasim Husain Thabet emphasized the significance of the U.S. market and confirmed the company's openness to pursue the right acquisition opportunities, although specific targets were not disclosed. TAQA's parent company, ADPower, under ADQ, owns a majority stake in the company, which has been increasing its investments globally, including a notable 50% stake in U.S. renewable energy firm Terra-Gen acquired by TAQA's Masdar unit. Aligning with United Arab Emirates' broader goal to significantly boost energy investments in the U.S., TAQA aims to significantly increase its capacity and spending over the next decade, targeting $20 billion between 2023 and 2030. While discussions over acquiring a stake in Spanish utility company Naturgy have ceased, Thabet hinted at the continuous pursuit of other M&A opportunities. The company's strategic focus remains on integrated companies with pipelines for growth, and while not currently looking at Syria, it keeps a watchful eye on situational developments.
Sectors
- Energy
- Utilities
- Renewable Energy
Geography
- United States – Targeted as a key market for TAQA's expansion in international energy and utility acquisitions.
- United Arab Emirates – The base country of TAQA and its parent company ADQ, influencing energy investment policies including those targeted at the U.S.
- Syria – Mentioned as a potential future market for investment, subject to situational changes.
Industry
- Energy – TAQA operates as a utility company and is involved in energy generation and networks, pursuing growth in this sector.
- Utilities – As the main provider of utility services in Abu Dhabi, TAQA's business model involves acquisitions and expansions in international utility markets.
- Renewable Energy – With investments like the stake in Terra-Gen, TAQA is actively involved in expanding its footprint in the renewable energy sector.
Financials
- $20 billion – Planned expenditure for organic and inorganic growth between 2023 and 2030.
- 150 gigawatts – Targeted capacity by the end of 2030, increased from the current 56 GW.
- $1.75 billion – Funds raised from TAQA's bond sale in October last year.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| TAQA | Target company | Company | Abu Dhabi's state-owned utility actively seeking acquisition opportunities. |
| ADPower | Parent Company | Company | Unit of Abu Dhabi's sovereign wealth fund ADQ, holding over 90% of TAQA. |
| ADQ | Parent Company | Company | Sovereign wealth fund of Abu Dhabi, owner of ADPower. |
| Terra-Gen | Previous Acquisition | Company | U.S. renewable energy firm in which TAQA's Masdar unit acquired a 50% stake. |
| Jasim Husain Thabet | CEO | People | Chief Executive Officer of TAQA, leading expansion strategies. |
| Naturgy | Potential Previous Acquisition Target | Company | Spanish utility firm, acquisition discussions previously held and abandoned. |