UAE-based leading construction and building materials firm Arkan Building Materials Company has stated that it has legally completed its merger with Emirates Steel, the leading integrated steel manufacturer in the Middle East region.
The merger of Arkan and Emirates Steel (the Combined Group) establishes the UAE’s largest steel and building material company with strong potential for growth both domestically and internationally.
According to the reports, “The merger comes following a shareholder vote on August 9, 2021, and the receipt of all regulatory approvals.” The deal offers the combined group significant revenue diversification and is the first time investors have had access to a steel producer on a UAE public market.
Under the terms of the proposed deal, Senaat will transfer Emirates Steel to Arkan in exchange for a convertible instrument that will automatically convert into approximately 5.1 billion ordinary Arkan shares. Following the conversion, Senaat would own 87.5 percent of the entire issued share capital of Arkan.
The combined group will also play an important role in delivering the UAE’s Industrial Strategy “Operation 300bn” through the production and distribution of market-leading products, ensuring that local industries are a driving force of a sustainable national economy.
As per the reports, the group is ideally positioned to scale and grow, create new business opportunities, and ensure that domestic manufacturers are at the forefront of driving a diverse and sustainable national economy.
Arkan, part of Abu Dhabi-based largest holding company ADQ, specializes in the manufacturing of building and construction products in the UAE and its portfolio firms comprise the Al Ain Cement Factory, Emirates Blocks Factories, ANABEEB, and Arkan Dry Mortar.
Abu Dhabi-based Emirates Steel is also part of ADQ through Senaat and supplies the domestic and international markets with finished products including wire rods, rebars, heavy sections, and sheet piles.
Thank you very much for choosing GCC Business News to be an important part of your professional life. You will receive a confirmation e-mail. Please check SPAM or UPDATES folder
