By Jason Benham
UPDATE 1: Qatar gov't directs companies to merge to inspire investment and increase profitability.
Qatar Navigation Co. and Qatar Shipping Co. have been ordered by the government to merge, the Doha bourse said in a statement on its website on Monday.
"In order to inspire growth in investment and increase profitability for benefit of the national economy of the state of Qatar and its investing public, both Qatar Navigation and Qatar Shipping received a direction from the government of Qatar to merge," the statement said.
The boards of directors of both firms will study all requirements in order to proceed with the merger, it added, giving no more details.
"I think the merger is because of the fact that we are facing a global crisis," said Samer Al-Jaouni, general manager of Middle East Financial Brokerage Co. in Doha.
"The government wants to merge them to cut costs and make it more competitive. I think the performance of both companies has been profitable with good results, so why now the merger?" (Reuters)For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Due to recent world economic situation it's better to get merged and expand business with unity and strength.