Saudi Tadawul acquires strategic stake in Dubai Mercantile Exchange
ABU DHABI, 3 days ago
Saudi Tadawul Group Holding Company (the Group), a leading diversified capital markets group in the Mena region, has announced that it has successfully acquired a 32.6% strategic stake in DME Holdings Limited, one of the leading international commodities exchanges.
This comes following the Saudi bourse's announcement early this year with regard to a binding agreement in this regard DME Holdings Limited.
As a result of the transaction, the Tadawul Group has become the joint largest shareholder in DME Holdings Limited alongside CME Group, with other shareholders including the Oman Investment Authority and Dubai Holding as well as global financial and commercial industry leaders.
Consequently, DME will be rebranded as the Gulf Mercantile Exchange (GME) to reflect its position as the key regional commodities exchange in the Middle East.
Completion of the acquisition follows receipt of all regulatory approvals, including the Dubai Financial Services Authority, as well as the satisfaction of other customary commercial conditions.
The investment from the Saudi group represents a significant opportunity to leverage world-class capabilities and expertise, accelerating GME’s growth as a regional commodities leader that is well-positioned to capture global commodity demand.
It will support a strategic move towards leveraging the Middle East’s geographic proximity to both key commodity production hubs and end-markets, with GME serving as a bridge between production and end-markets, said the statement from the Saudi Tadawul Group.
Furthermore, the partnership will enable GME to capture demand for energy, metals, and agricultural commodity markets and support the ongoing global transition to a sustainable economy through the launch of next-generation derivatives contracts, it added.-TradeArabia News Service
