Alpha Dhabi takes over water specialist Metito

Metito

• Alpha Dhabi buys majority stake
• Metito in global water management
• Water scarcity could cost Mena 14% GDP

Investment company Alpha Dhabi announced on Monday the acquisition of a majority stake in Metito Holdings, a company involved in the water and wastewater industry worldwide. 

Pending regulatory approvals, the deal marks Abu Dhabi-based Alpha Dhabi’s entry into the water and wastewater sector, with its CEO saying the need for sustainable water solutions “has never been more critical”.

The value of the acquisition has not been disclosed. Alpha Dhabi is purchasing the majority stake from Mitsubishi Corporation, Mitsubishi Heavy Industries and Gulf Capital. 

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The deal will be the cornerstone of the company’s new Alpha Dhabi Climate Capital fund, focusing on climate-conscious investments.

The Ghandour family, the founding shareholders of Metito, will retain their leadership roles, according to an announcement on Abu Dhabi Stock Exchange, where Alpha Dhabi is listed.

Hamad Salem al Ameri, CEO and managing director of Alpha Dhabi, said: “The need for sustainable water solutions has never been more critical. Our partnership with Metito is a decisive step towards addressing this.”

By 2025, an estimated 3.5 billion people could be living in water-scarce regions. The Middle East and North Africa (Mena) region, home to 7 percent of the world’s population but just 1 percent of its freshwater resources, is the most water-stressed globally. 

The World Bank projects that by 2050, water scarcity could cost the Mena region 6 to 14 percent of its GDP. 

“These alarming statistics underscore the urgent need for innovative solutions and impact investments in the water sector,” the statement added.

Talal Ghandour, co-CEO of Metito, said: “With Metito’s extensive experience across 50 countries and our dedication to innovation and technology, this partnership will bolster our capabilities.”

Alpha Dhabi Holding was established in 2013 and today has more than 150 businesses spread across healthcare, renewable energy, petrochemicals and other industries such as real estate, construction and hospitality. Its shares initially rose slightly on Monday following the deal announcement.

Metito operates across emerging markets in the entire water treatment value chain specialising in desalination, wastewater treatment, water re-use and industrial solutions. It has more than 20 offices globally.

Mena entities were involved in 318 new M&A deals in the first six months of 2023. This was down 14 percent year on year, although the combined sales value declined only 0.4 percent to around $44 billion.