ANN Algeria has reportedly frozen part of a major international acquisition deal after objecting to the transfer of strategic desalination plants to an Emirati company.
According to Spanish newspaper El Confidencial, Algerian authorities refused to approve the inclusion of two local desalination facilities in a takeover deal involving Abu Dhabi’s TAQA and Spanish water company GS Inima, currently owned by South Korea’s GS Group.
The plants are located in Mostaganem in western Algeria and Cap Djinet east of Algiers. Together, they are estimated to be worth around 350 million.
Algerian officials reportedly viewed the issue as more than a business transaction. The country considers water infrastructure a strategic sector tied directly to national security, especially as pressure on water supplies continues to grow across the region.
The wider deal valued at roughly $1.2 billion would have given TAQA control over GS Inima’s global assets, including operations in Algeria. But without regulatory approval from Algiers, the transfer of shares linked to the Algerian projects cannot move forward.
The move comes at a time of strained relations between Algeria and the UAE. While neither side has commented publicly on the reports, Algeria has become increasingly cautious about foreign investments involving sensitive infrastructure.
In recent years, the country introduced stricter oversight rules allowing authorities to intervene in ownership transfers affecting sectors considered strategic, even after easing some broader foreign investment restrictions.
The decision could now force the companies involved to rethink the structure of the deal.
In Mostaganem, local authorities may push for Algerian entities to recover the foreign stake currently held by GS Inima. State-owned Algerian Energy Company, a subsidiary of Sonatrach, is among the names being mentioned.
In Cap Djinet, Spanish group Aqualia already a partner in the project could also move to acquire the shares through preferential purchase rights.
For Algeria, the message seems fairly clear when it comes to water infrastructure, the state is not willing to leave control in foreign hands too easily.
