Proposed merger between Emaar and Dubai Holdings goes down badly with investors
Dubai’s stock market has plummeted following the news Emaar Properties is in merger talks with Dubai Holdings. The two entities are discussing merging Emaar with three developers owned by Dubai Holdings: Dubai Properties, Sama Dubai, and Tatweer.
Dubai's index fell 6.1% on Sunday in the hours following the announcement to 1,745 points as 18 stocks fell by more than 4%. Emaar itself, which is building the world's tallest tower in Dubai, dropped 10% yesterday.
In a statement to the Dubai Financial Market, Mohammed al-Gergawi, chairman of Dubai Holdings, said of the proposed $52.8m deal: “Consolidating these companies with Emaar is a natural progression in the evolution of the Dubai real estate landscape, providing benefits to all stakeholders.”
He added that joining forces would help the new entity to compete internationally.
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