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Abu Dhabi government-owned industrial conglomerate NMDC Group has announced that its newly-created subsidiary NMDC LTS has completed the acquisition of a majority 70% stake in local oil and gas services firm Emdad.

The transaction was financed through debt and equity, Abu Dhabi Securities Exchange-listed NMDC Group said in a statement on 4 June.

NMDC Group first announced the expansion of its business portfolio through the creation of NMDC LTS, along with the transaction to acquire a 70% equity stake in Emdad, in December.

The acquisition enables NMDC Group to provide services such as operations and maintenance and complement its existing offerings in engineering, procurement, construction and installation services.

NMDC LTS will own and/or operate NMDC Group’s pool of marine support craft, technical capabilities, plant and equipment to enable the expansion of its services beyond the construction and industrial sectors.

“This strategic acquisition enables NMDC Group to expand into the operational excellence segment of recurring revenues in the oil field services [sector], further diversifying its portfolio and strengthening its competitive advantage,” NMDC Group said in its statement.

“In parallel, this acquisition will provide NMDC Group with a broader range of services and additional avenues for revenue growth, with Emdad’s offering spanning over an array of different services, including well intervention, waste management, shutdown/ turnaround, coil tubing, valves, among other services,” it added.

A&O Shearman and PricewaterhouseCoopers (PwC) acted as the legal counsel and financial adviser, respectively, to NMDC Group on the transaction.

On Emdad’s side, Clyde & Co. provided legal counsel, while KPMG Lower Gulf was the financial adviser.

Emdad business

Emdad reported revenues of more than $163m in 2024, and its equity stood at approximately $60m.

Emdad’s clientele includes Adnoc, Borouge and Emirates Global Aluminum. The company delivers support across the oil and gas value chain – from well intervention and waste management to asset integrity management.

Emdad’s operations are “further strengthened by its subsidiaries”, which provide specialised services in areas such as well construction, plant maintenance, catalyst handling and facility management.

Key divisions include Emjel, specialising in coiled tubing and cementing; Emdad Services, focused on operational maintenance; and IGC, which handles civil and electrical facility management.

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