Arkan Board Approves Merger with ADQ’s Emirates Steel
UAE-based Arkan Building Materials Co’s board has approved its proposed all-share acquisition of Emirates Steel Industries. Arkan will acquire Emirates Steel with 5.1 billion ordinary shares at AED 0.798 dirhams each for a total value of AED 4.07 billion The deal will leave Arkan 87.5% owned by Senaat, a unit of Abu Dhabi sovereign wealth fund ADQ. The merger still needs to be approved by Arkan’s general assembly. The deal, which will create a listed 'building materials and construction champion'
Arkan Chairman Mr Jamal Salem Al Dhaheri said “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. 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.”
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.