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Oman power producers Al Batinah Power Company SAOG and Al Suwadi Power Company SAOG are exploring a potential merger.
The two companies did not disclose the proposed transaction value or a timeline for completion.
The companies stated in a bourse filing, “with similar assets, business operations and founders”, the entities are now exploring potential synergies and efficiencies arising from such merger as part of a new 15-year Power Purchase Agreement.
Both the companies, which are listed on the Muscat stock exchange, are also assessing their current debt structures to fulfil existing and new funding needs envisaged during the new PPA period. The government of Oman holds a near 10% stake.
The proposed merger is subject to regulatory approvals.
The power and utilities sector in Oman has seen consolidation in recent years, with the most prominent one being the June 2023 merger of the electricity distribution and supply companies of the Nama Group, which resulted in the formation of two companies, Nama Electricity Distribution and Nama Supply.
(Writing by Bindu Rai, editing by Seban Scaria)
