Stock exchange owner and operator Saudi Tadawul Group will buy a 32.6% stake in the parent company of Dubai Mercantile Exchange (DME) and become the Emirati trading platform's joint largest shareholder, it said on Thursday.
Tadawul will acquire a mix of new and existing shares in DME Holdings for $28.5 million in return for its 32.6% stake, with an option to increase the shareholding © Mena Today
Stock exchange owner and operator Saudi Tadawul Group will buy a 32.6% stake in the parent company of Dubai Mercantile Exchange (DME) and become the Emirati trading platform's joint largest shareholder, it said on Thursday.
Founded in 2007, DME lists the Oman crude oil futures contract, which is a physically settled contract serving as a Middle East benchmark used by the region's national oil companies as part of their export pricing formulas.
Tadawul will acquire a mix of new and existing shares in DME Holdings for $28.5 million in return for its 32.6% stake, with an option to increase the shareholding.
Under the deal, the Saudi stock exchange owner will become the joint largest shareholder alongside CME Group, "with other shareholders including the Oman Investment Authority and Dubai Holding as well as global financial and commercial industry leaders", it said.
Tadawul said that "no Saudi Arabian crude oil contract will be traded, sold or bought on, or indexed to, nor will Saudi crude be delivered against" DME's Oman contract to avoid conflict of interest.
Following the closing of the deal, DME will continue to operate from its headquarters in the Dubai International Financial Centre and will remain regulated by the Dubai Financial Services Authority, according to the statement.
Reporting by Federico Maccioni
Saudi Arabian Mining Co. (Maaden) and Australia-based Midana Exploration Pty Ltd, part of Hancock Prospecting, have formed a joint venture to accelerate mineral exploration across Saudi Arabia, with initial work set to target the Nabita–Ad-Duwayhi Gold Belt after winning exploration licenses from the Ministry of Industry and Mineral Resources.
The United Arab Emirates said on Tuesday said it was pulling out its remaining forces in Yemen after Saudi Arabia backed a call for UAE forces to leave the country within 24 hours.
Saudi Arabia said on Tuesday its national security was a red line and backed a call for UAE forces to leave Yemen within 24 hours, shortly after a Saudi-led coalition carried out an airstrike on the southern Yemeni port of Mukalla.
To make this website run properly and to improve your experience, we use cookies. For more detailed information, please check our Cookie Policy.
Necessary cookies enable core functionality. The website cannot function properly without these cookies, and can only be disabled by changing your browser preferences.