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Saudi Tadawul Group Holding Company (Tadawul Group) has signed an agreement to acquire a 32.6% stake in DME Holdings Limited and other shareholders for SAR 107 million ($28.5 million).
As a result, the Saudi bourse operator will invest indirectly in Dubai Mercantile Exchange Limited (DME), owned by DME Holdings and regulated by the Dubai Financial Services Authority (DFSA).
The other shareholders are New York Mercantile Exchange (owned by CME Group), Tatweer Dubai (owned by Dubai Holding) and Eagle Commodities Limited (owned by Oman Investment Authority).
Tadawul Group will become the joint largest shareholder alongside CME Group in DME, the company said in a statement published on the Saudi stock exchange on Thursday
As part of the potential transaction terms, DME will be rebranded as the Gulf Mercantile Exchange to reflect its position as a regional commodities exchange with global relevance.
The transaction will be funded by Shariah-compliant borrowing, the statement added.
The Saudi bourse operator confirmed that the DME will continue operating as usual from its DIFC headquarters and remain regulated by the DFSA.
(Editing by Seban Scaria seban.scaria@lseg.com)
