Saudi Arabia's ACWA Power (2082.SE) has signed a share purchase agreement to acquire stakes in power and desalination assets in Kuwait and Bahrain from French utility developer Engie (ENGIE.PA) for $693 million, the companies announced in a joint statement on Wednesday. The deal includes operating capacities of 4.61 GW of gas-fired power generation and 1.11 million cubic meters per day of water desalination facilities.

As part of the acquisition, ACWA Power will take an 18% stake in Az Zour North in Kuwait and 45% stakes in Al Ezzel and Al Dur projects, as well as a 30% stake in the Al Hidd facility in Bahrain. Additionally, ACWA Power will acquire a portfolio of companies responsible for the operation and maintenance of these assets.

The company, which already supplies power and water in Bahrain, is expanding its regional footprint with this move. ACWA Power CEO Marco Arcelli stated, "We consolidate our presence in Bahrain where we are already a reliable supplier of power and water, and we enter Kuwait, where we recently submitted a bid for a large power and desalination plant."

The transaction is subject to regulatory and stakeholder approvals before completion, the companies added.