NMDC LTS to Acquire 70% Stake in Emdad, Expanding Its Reach into Oilfield Services

Business

NMDC LTS to Acquire 70% Stake in Emdad, Expanding Its Reach into Oilfield Services

NMDC LTS, a subsidiary of NMDC Group, has entered a definitive agreement to acquire a 70% equity stake in Emdad, a prominent service provider in the oil and gas, utilities, and industrial sectors. This strategic acquisition, pending regulatory approvals, is set to broaden NMDC Group's portfolio and strengthen its footprint in oilfield services across diverse geographies.

The move complements NMDC Group's existing expertise in engineering, procurement, construction, and installation (EPCI) services, enabling it to offer comprehensive operations and maintenance solutions. It also aligns with NMDC’s strategy to drive sustainable growth, diversify service offerings, and capitalize on the region’s favorable energy sector outlook.

Strengthening Market Presence and Partnerships

By integrating Emdad’s capabilities, NMDC aims to leverage its established partnerships with key players such as ADNOC and ARAMCO. The acquisition builds on NMDC Energy PJSC’s successful listing on the Abu Dhabi Securities Exchange (ADX), which garnered significant attention with an IPO oversubscribed 31.3 times.

Eng. Yasser Zaghloul, CEO of NMDC Group, remarked:
"This acquisition is a pivotal step in advancing the UAE’s vision for a resilient and innovative energy industry. By combining Emdad’s expertise with NMDC’s scale and innovation, we are creating a robust platform to deliver enhanced value to our stakeholders while driving sustainable growth."

Emdad’s Legacy and Expertise

Founded in 1979, Emdad has established itself as a leader in energy services with diversified revenue streams across upstream, midstream, and downstream activities. It provides comprehensive support in well services, waste management, and asset integrity management while maintaining strong relationships with major clients such as ADNOC, Borouge, and Emirates Global Aluminum.

Mohammed Juma Al Bawardi, CEO of Emdad, commented:
"Partnering with NMDC Group represents an exciting chapter for Emdad. Together, we aim to amplify value for our clients and advance our shared vision for growth and innovation in the energy sector."

Future Prospects

This acquisition underscores NMDC Group’s commitment to innovation and leadership in the energy sector. It also sets the stage for further regional and international expansion, reinforcing its market position and supporting its long-term diversification goals.

Advisory Roles

NMDC Group: A&O Shearman (Legal counsel), PricewaterhouseCoopers (Financial advisor).
Emdad Shareholders: Clyde & Co (Legal counsel), KPMG Lower Gulf (Financial advisor).

NMDC Group will continue to update stakeholders on developments related to this acquisition.