Saudi Tadawul Group completes strategic stake acquisition in DME

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Riyadh: Saudi Tadawul Group Holding Company has sealed the acquisition of 32.60% strategic equity in DME Holdings Limited, a leading international commodities exchange, according to a press release on 26 June 2024.

Following the equity takeover transaction, DME will be rebranded as the Gulf Mercantile Exchange (GME) to reflect its position as an important regional commodities exchange in the Middle East.

The Saudi group is, accordingly, the joint largest shareholder in DME alongside CME Group, with other shareholders such as the Oman Investment Authority and Dubai Holding in addition to global financial and commercial industry leaders.

This announcement builds on the disclosure made on 18 January this year regarding the binding agreement to acquire a 32.6% strategic stake in DME by the Saudi leading diversified capital market group in the MENA region.

The equity acquisition followed all regulatory approvals from the Dubai Financial Services Authority and others, as well as the satisfaction of other customary commercial conditions.

Saudi Tadawul Group’s investment represents “a significant opportunity to leverage world-class capabilities and expertise, accelerating GME’s growth as a regional commodities leader that is well-positioned to capture global commodity demand,” according to the announcement.

This move is expected to leverage the Middle East’s geographic proximity to both key commodity production hubs and end-markets. Meanwhile, GME will be serving as a bridge between production and end-markets.

The partnership will further enable GME to capture demand for energy, metals, and agricultural commodity markets and support the ongoing global transition to having a sustainable economy through the launch of next-generation derivatives contracts.

During the first quarter (Q1) of 2024, the listed group generated net profits worth SAR 201.50 million and revenues of SAR 387.60 million.