The Abu Dhabi Water and Electricity Authority (Adwea) has transferred its 40 per cent stake in an Oman aluminium smelter to the Abu Dhabi National Energy Company (Taqa).

The deal will see Taqa pay $400m for Adwea’s stake in Sohar Aluminium Company’s 360,000 tonnes-a-year smelter and 1,000MW power plant in Oman.

“Our track record in power generation means that we are well placed to add value to such an energy intensive business as aluminium,” Abdulla  al-Nuaimi, chief executive of Taqa says. “This is a high quality operation and is not only expected to increase Taqa’s cash flow, but provides entry for us into the Sultanate of Oman.”

Other shareholders in Sohar Aluminium include the Oman Oil Company (OOC) which also owns 40 per cent and Canada’s Rio Tinto Alcan, which owns the remaining 20 per cent.