Muscat – The Financial Services Authority (FSA) has granted in-principle approval for the proposed merger of Al Suwadi Power Company and Al Batinah Power Company, two independent power producers listed on the Muscat Stock Exchange (MSX).

Al Suwadi Power said in a disclosure to the MSX on Sunday that it had received the FSA’s in-principle approval for the proposed merger, subject to fulfilling all applicable requirements and obligations under the Companies Law and other relevant legislation and regulatory requirements.

The company said it is currently awaiting the required approvals from other relevant authorities before proceeding further with the proposed transaction.

Al Suwadi Power and Al Batinah Power had announced in May that they were conducting a preliminary assessment of a potential merger. At that stage, the companies said the proposal remained at an early stage and was subject to further assessments, as well as approvals from regulatory authorities, lenders and shareholders of both companies.

The proposed merger brings together two power generation companies with similar assets, business operations and founders. Al Suwadi Power operates the 750MW Barka III Independent Power Plant (IPP), while Al Batinah Power operates the 750MW Sohar II IPP.

The companies had said that potential synergies and operational efficiencies arising from the proposed merger had already been factored into the economics of their new 15-year Power Purchase Agreements (PPAs) with Nama Power and Water Procurement Company (Nama PWP).

Both companies signed the new PPAs with Nama PWP on April 7, 2026. The agreements will take effect on April 1, 2028, immediately after the expiry of their existing PPAs, and will remain in force until March 31, 2043.

Under the new agreements, the contracted capacity of each power plant will be 746.53MW. The PPAs provide long-term revenue visibility for the companies by ensuring the continued offtake of electricity under agreed commercial terms.

The agreements are also expected to support the operational sustainability of the two plants, strengthen the strategic partnership with Nama PWP and align with the companies’ long-term strategies in Oman.

In connection with the proposed merger, Al Suwadi Power and Al Batinah Power had also disclosed in May that they were evaluating potential refinancing options for their existing financing arrangements.