Japanese giants buy Metito stake
Japanese companies Mitsubishi Corporation (MC), and Mitsubishi Heavy Industries, (MHI), have acquired a joint 38.4% stake in United Arab Emirates-based water management company Metito for an undisclosed sum.And Japan Bank for International Cooperation (JBIC) is providing Metito, a capital intensive business, with up to US$ 92 million to fund growth. The bank said its investment aims at supporting the overseas business deployment of the two Japanese companies in what Metito described as the strategic partnership.
MC and MHI acquired their stake in Metito predominantly from existing shareholder Gulf Capital which has reduced its holding from 56% to 23.8%. Metito said. And World Bank member, International Finance Corporation halved its holding in Metito to 3%.
The Japanese companies in the partnership expected the deal to strengthen ties between the Middle East and Japan in the water and wastewater industry, and to build a platform in emerging markets.
Metito chief executive Mutaz Ghandour, said: "Metito is already well poised to tap into projects of various scales, and this partnership, in addition to the investment by JBIC, will expedite the company's growth."
Speaking to Reuters he said; ""We have some very aggressive plans and we feel there is definite room in the global water market for us to be the world's leading emerging markets player."
Chief operating officer of MC Masaji Santo, said he saw "massive growth potential." in strategic emerging markets.
MHI senior general manager, Yoichiro Ban too saw "many new opportunities, particularly in the emerging markets," arising from the deal.
Director general of the Power and Water Finance Department, at JBIC, Yoichiro Ban said: "This investment is very much in line with our mandate to support Japanese companies looking to invest in emerging markets."
Metito said it had reported an annual compound growth rate of 17% in revenues, and 33.6% in net profits over the past eight years.