Sunday 24 October 2021
 
»
 
»
FIRM GETS REGULATORY NOD

Arkan, Emirates Steel merge to create UAE steel, building materials powerhouse

ABU DHABI, 17 days ago

UAE-based Arkan Building Materials Company has announced the legal completion of its merger with  Emirates Steel Industries, following the approval from the shareholders and the Emirati regulator, thus creating a major steel and building materials powerhouse.
 
Arkan is a major construction and building materials company in the UAE, while Emirates Steel is owned by General Holding Corporation (Senaat), a part of ADQ, one of the region’s largest holding companies.
 
The merger had been first announced in May this year when ADX-listed Arkan said its board of directors has received an offer to merge the two firms.
 
Under key terms of the offer, Arkan had issued to Senaat a convertible instrument, which converted into 5.1 billion ordinary shares of the building materials' company. 
 
This Arkan-Emirates Steel combination will result in the creation of a listed national champion in the building materials and construction sector with strong potential for growth in the UAE and internationally, said a statement from the company.
 
The transaction provides significant revenue diversification for the combined group and marks the first time that investors have access to a steel producer on a UAE public market, it stated.
 
The new group is well placed to scale and grow, create new business opportunities and ensure that homegrown manufacturers are at the forefront of driving a sustainable, diversified national economy, it added.-TradeArabia News Service



Tags:

More Construction & Real Estate Stories

calendarCalendar of Events

Ads