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ADQ advances in Urbaser acquisition process: Abu Dhabi’s state-owned holding company ADQ has reportedly advanced to the second phase of the sale process for Spanish waste management and environmental services group Urbaser from Platinum Equity, Spanish newspaper Expansion reports, citing sources it says have knowledge of the proceedings. The bid, which could value Urbaser at EUR 5 bn (including debt), sees ADQ up against Blackstone and EQT, beating out contenders including I Squared, KKR, and Macquarie.
Is there a fourth? Japanese firm Itachu’s environmental arm also made an offer, but it is unclear if the company has advanced to the next phase.
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What’s next? The three firms now have access to more detailed information about Urbaser’s business to conduct thorough due diligence and finalize their offers. ADQ could partner with Blackstone or EQT, given the size of the capital required, sources say. Binding bids are due by February.
Background: Platinum has made four major divestments worth EUR 1 bn to keep Urbaser’s size manageable for future buyers since acquiring the group from the Chinese group CNTY for EUR 3.5 bn back in 2021, Expansion reports. Platinum hired Citi and Santander as advisors for the sale earlier this year, sources tell Reuters.
ADQ has other waste management ventures: The Abu Dhabi government transferred its ownership of Abu Dhabi Waste Management (Tadweer) to ADQ in 2022. ADQ also partnered with the UAE’s food loss and waste initiative Ne’ma to develop joint projects aimed at reducing food waste across the value chain in August. It’s also backing a USD 2.5 mn pilot project by UAE’s Tadweer and the UK’s Aquagrain to deploy Aquagrain’s soil-enhancing tech which uses organic waste to grow crops in arid lands using 50% less water and inorganic fertilizers.
