Japanese giants swoop for Metito stake
Mitsubishi sisters buy 38.4% share in Dubai-based water specialist.
Mitsubishi Heavy Industries (MHI) and Mitsubishi Corporation (MC) are expanding their footprint in the Middle East water market through a large stake in Metito.
The Japanese giants have agreed to acquire a 38.4% holding in the Dubai-based company mainly from private equity investor Gulf Capital, according to a statement.
Japan Bank for International Cooperation (JBIC) has also agreed to invest up to $92mn in classified shares to support Metito's growth opportunities.
Gulf Capital and the International Finance Corporation (IFC), the private sector arm of the World Bank Group, will each hold 23.8% and 3% of Metito following the deal.
Mutaz Ghandour, CEO, Metito, said: “MC and MHI are exceptional companies. We are excited to be partnering with them to implement our strategic plans for growth and to seize the opportunities that await us, as we fully utilise our varied synergies.
“Metito is already well poised to tap into projects of various scales, and this partnership, in addition to the investment by JBIC, will expedite the company’s growth through creating new opportunities and allowing us to become more competitive, globally.”
Masaji Santo, senior vice president, division COO, MC, said: “This investment is ideal for us as it creates a compelling strategic partnership capitalising on our global network and corporate capabilities and Metito’s unique value proposition.”
Yoichiro Ban, senior general manager, MHI, said: “This is a synergistic partnership with Metito’s strengths enhancing ours and vice versa.
"Working together will enhance MHI’s business and open many new opportunities, particularly in the emerging markets where Metito is well positioned as a leader in the water and wastewater sector.”
Metito has built more than 3,000 facilities for water desalination, water treatment, wastewater treatment and recycling and operates in Egypt and China as well as the UAE.
The company ranks in the top five worldwide in terms of number of installed desalination plants, according to the International Desalination Association (IDA).
MHI has an extensive track record in building large-size desalination plants in the Middle East and has developed advanced technologies for water treatment, the statement said.
MC has been building up management know-how in the water business through investments in Japan, Australia, the Philippines and Chile.