Dubai Multi Commodities Center (DMCC) is reportedly in talks with India's Multi Commodity Exchange (MCX), to acquire a stake in the company.
DMCC and MCX had launched the Dubai Gold and Commodities Exchange and now trades in futures silver, fuel oil, and currency contracts, apart from the yellow metal.
India's Business Standard reported yesterday that sources close to the development said DMCC "would initially pick up a minor ownership in the MCX and later increase it following MCX's initial public offering [IPO]".
Ahmed bin Sulayem, chief operating officer of DMCC, said generally the DMCC is always looking for opportunities. "At DGCX we look at international commodity exchanges and other exchanges and look to sign memorandum of understandings and take it even further. We are always on the look out that's no secret." The Business Standard report, which did not cite its source, said that MCX is looking to raise Rs30bn (Dh2.5bn) through an IPO and DMCC may pick up a minor stake before the IPO and greater chunk later.
Recently, there were reports that US-based New York Mercantile Exchange is eyeing a nine per cent stake in MCX for about $60 million (Dh216m).
Many Dubai companies including DMCC's parent company Dubai World and Dubai Holding want strategic and controlling stakes in international companies.
By Emirates Today Staff
© Emirates Today 2007
