Mitsubishi to acquire stake in UAE water company

Mitsubishi Corporation and Mitsubishi Heavy Industries (MHI) have signed an agreement together with the Japan Bank for International Cooperation (JBIC) to acquire a 38.4% share in Metito’s water and wastewater projects.

Metito provides total intelligent water management solutions to emerging markets. It has built more than 3,000 facilities for water desalination, water treatment, wastewater treatment and recycling, also provides utility services in the UAE, Egypt and China.

Following the acquisition, the Japanese companies will be able to expand their presence in the water business in fast-growing Middle Eastern, African and Asian countries.

The companies will acquire the shares in Metito from an active alternative asset manager in the Middle East Gulf Capital, and other shareholders.

JBIC will invest up to $92m in classified shares to support the growth opportunities of the water firm.

By partnering with Metito, Mitsubishi hopes to contribute to improve the living conditions of people, while preserving the environment in regions that face water scarcity and poor infrastructure issues.

By making investments in Japan, Australia, the Philippines and Chile, Mitsubishi has been building up management know-how in the water business, while MHI builds large-size desalination plants in the Middle East, in addition to developing advanced technologies for water treatment.

The partnership is expected to accelerate the strategic expansion of Mitsubishi’s water business globally, by getting the strength and support from JBIC.

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Image: Mitsubishi Corporation’s headquarters in Chiyoda, Tokyo. Photo: courtesy of Kakidai.