Abu Dhabi government-owned energy investment company IPIC said on Wednesday it acquired a 2% stake in Energia De Portugal to pursue opportunities in the power and water sector.
International Petroleum Investment Co invests in oil-related projects for the government of Abu Dhabi, the capital of the emirate that controls more than 90% of the UAEs' oil reserves.
"The acquisition forms part of IPIC's current diversification plans," a statement from IPIC said without giving the value of the deal.
"It marks the entry of IPIC into the utility sector in which a partnership with a leading global utility player, such as EDP, will allow both companies to pursue investment opportunities in the rapidly expanding IWPP (independent water and power projects) sector, especially in the Middle East North Africa region," the statement said.
The cooperation is intended to create opportunities in the field of conventional and renewable energy generation and distribution in the MENA, Iberia, and broader Asian regions, the statement said.
"It is expected to facilitate EDP's engagement with leading gas producers in the Middle East; and promote interactions between EDP and companies within IPIC's portfolio that are active in the energy areas."
EDP is a leading utility in the Iberian Peninsula, with 10.5 million customers and 15,894 MW installed capacity.
It is active in conventional, hydro, and renewable power generation, especially wind energy in Europe, the United States and Brazil. (Reuters)For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.