ABU DHABI: UAE-based Arkan Building Materials Co. said its board has approved its proposed all-share acquisition of Emirates Steel Industries.
Arkan will acquire Emirates Steel with 5.1 billion ordinary shares at 0.798 dirhams each for a total value of 4.07 billion dirhams ($1.11 billion), it said in a filing to the Abu Dhabi stock exchange. The deal will leave Arkan 87.5 percent owned by Senaat, a unit of Abu Dhabi sovereign wealth fund ADQ.
The merger still needs to be approved by Arkan’s general assembly, it said in the statement.
Senaat, the UAE’s largest industrial conglomerate, proposed the deal on May 9. ADQ assumed ownership of Senaat from the Abu Dhabi Executive Council in March 2020.
“This transaction with Emirates Steel will accelerate our ambitions by combining two sector leaders in the UAE, thereby expanding our product portfolio and order book significantly,” said Arkan Chairman Jamal Salem Al Dhaheri. “Arkan is poised to capitalize on emerging opportunities in the construction and building materials sectors, as the world begins to recover from the COVID-19 pandemic.”
