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Sun 10 Jan 2010 10:57 AM

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Barwa, Alaqaria merger to create $3bn company

Companies agree initial terms of deal to create ninth largest listed firm in Qatar.

Barwa Real Estate Company (Barwa) and Qatar Real Estate Investment Company (Alaqaria) on Sunday announced the initial terms of their proposed merger.

The enlarged Barwa group will be the ninth largest company on the Qatar Exchange with a market capitalisation of QR11.1 billion ($3.05bn), it said in a statement.

It added that the proposed merger has the support of the Government of Qatar and Qatari Diar, which currently holds 45 percent and 27 percent of the share capital of Barwa and Alaqaria respectively.

Under the terms of the proposed merger, which are still subject to final agreement and approval of the relevant regulatory bodies and the Boards of Barwa and Alaqaria, Alaqaria will become a subsidiary of Barwa, the statement added.

The statement added that the proposed merger "will further enhance Barwa’s position as a leading regional real estate company by bringing together two highly complementary businesses".

The two companies have non-competing portfolios with Barwa focusing on retail, office, hospitality and residential real estate and Alaqaria on industrial housing.

Commenting on the announcement, Ghanim Bin Saad Al Saad, chairman and managing director of Barwa and CEO and managing director of Qatari Diar, said: “This transaction will create a company with significant scale and depth across all real estate segments and which will continue to play a critical role in supporting the economic development of Qatar.”

Full details of the terms and conditions of the offer and proposed merger will be made available in due course, the statement added.