The merger of the UAE’s two larger stock exchanges took a step closer to completion after it was reported that the due diligence phase had been completed.
Two sources familiar with the matter told Bloomberg that valuation and structuring work was completed in December, with the merger now requiring approval from the governments of Dubai and Abu Dhabi before the deal can proceed further.
Bloomberg reported that Abu Dhabi, owner of the Abu Dhabi Securities Exchange, is being advised by JP Morgan Chase and First Gulf Bank, while Dubai Financial Market owner Investment Corporation of Dubai is being advised by Citigroup.
Both sources said there was no clear timetable for when the merger will be completed.
A merger could allow the exchanges to cut costs, harmonise their technologies and make it simpler for new investors to obtain access to a full range of the UAE's top companies.For all the latest market 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.