MUSCAT, MAY 10
Al Suwadi Power Company SAOG and Al Batinah Power Company SAOG have announced that they have commenced a preliminary assessment of a potential merger, alongside a review of refinancing options linked to their existing financing arrangements and future capital expenditure requirements.
In disclosures issued on May 10, 2026 to the Financial Services Authority (FSA), the Muscat Stock Exchange (MSX) and the investor community, both companies said the proposed merger is still at an early stage and remains subject to multiple approvals and assessments.
The two companies noted that they share similar assets, business operations and founders, with the merger aimed at exploring operational synergies and efficiencies. According to the disclosures, these efficiencies were already contemplated as part of the economics of the companies’ new 15-year Power Purchase Agreement (PPA).
Al Suwadi Power stated that it had begun assessing a potential merger with Al Batinah Power, while Al Batinah Power issued a parallel disclosure confirming the same initiative from its side. The announcements suggest a coordinated move by the two listed power firms to evaluate consolidation opportunities in Oman’s electricity generation sector.
The companies also revealed that they are studying potential refinancing options related to their current debt structures, as well as funding requirements tied to capital expenditure expected during the period of the new PPA.
However, both companies stressed that the refinancing assessment remains in its preliminary phase and that there is no certainty any refinancing transaction will proceed or be completed successfully.
They added that any merger or refinancing transaction, if pursued, would require approvals from relevant regulatory authorities, lenders, shareholders and the respective boards of directors of both companies.
The disclosures further indicated that the companies would continue to keep the market informed of any material developments in line with applicable regulatory requirements.
The move comes amidst broader efforts within the regional utilities and power sector to enhance operational efficiency, optimise financing structures and strengthen long-term competitiveness through consolidation and refinancing initiatives.
Al Suwadi Power and Al Batinah Power are among Oman’s established independent power producers operating under long-term power purchase arrangements. Any successful merger between the two entities could potentially create a larger and more integrated power generation platform within the Sultanate of Oman’s electricity market.
The announcements did not disclose a proposed transaction value, timeline for completion, or details regarding the structure of any possible merger arrangement.
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