Discussions regarding a potential acquisition of water and wastewater treatment specialist Metito are ongoing, the company announced. This news comes after Alpha Dhabi Holdings, a UAE-based investment firm, abandoned its proposed purchase of a majority stake in Metito earlier this year.
Alpha Dhabi's plan, announced in September 2023, involved acquiring shares from Gulf Capital, which had partnered with Metito for 17 years. The deal hinged on customary regulatory approvals, which ultimately proved to be a hurdle.
Undeterred, Metito has been pursuing discussions with other interested parties through its investment advisor. These potential investors have expressed a strong interest in acquiring a stake in the company, and Metito remains confident about reaching a successful agreement.
"These discussions are ongoing and we are confident of a positive outcome, " a company statement said.
The potential sale of Metito reflects the growing importance of the water and wastewater sector. With a rising global population and increasing water scarcity, companies with expertise in water treatment and desalination are in high demand. Metito, with its extensive experience in developing and managing water projects across the Middle East and North Africa, is a prime target for investors seeking a foothold in this expanding market.
The company's recent success in securing major contracts further strengthens its position. Metito, along with its consortium partner Orascom Construction of Egypt, recently finalized financing for the first phase of Project Wave, a $2. 2 billion initiative to deliver treated seawater to onshore oil fields in Abu Dhabi. Additionally, the company reached financial close in April on a $1. 2 billion contract to develop a sewage treatment plant project in Qatar.
The identity of the potential investors involved in the current discussions remains undisclosed. However, speculation centers on international firms eager to capitalize on Metito's proven track record and expertise in a sector with significant growth potential.
The outcome of the ongoing discussions could have a significant impact on Metito's future strategy and operations. A new investor could provide the company with fresh capital for expansion and project development. Additionally, the strategic vision of the new partner could influence Metito's focus and direction in the coming years.
While the specifics of the potential deal remain under wraps, one thing is certain:Metito's continued pursuit of a new investor underscores the company's attractiveness in the water treatment sector and its bright prospects for future growth.