DOHA: Business consolidation seems to be an emerging trend in the crowded Qatari market as two more listed companies are taking a close look at the possibility of a merger.
Qatar Meat and Livestock Company, popularly known as Mawashi, has said it is not averse to seeking consolidation with Al Meera if the move is found to be in the interest of the company.
"We wouldn't have problems (in seeking a merger with Al Meera) if we find that the step is in the interest of our company," said Ahmed Nasser Seraiya Al Kaabi, Managing Director of Mawashi.
He didn't specify if the proposal was under study but sources obliquely hinted the two companies might go ahead and study at least the viability of a merger.
Al Kaabi was replying to questions during a news briefing to announce the half-yearly results of the company here on Monday.
Al Meera, formerly Al Muntaza Cooperative Stores, is a cooperative chain of large stores which basically deal in household provisions, while Mawashi is the importer of meat and livestock and manages the three slaughterhouses in the country.
Earlier this year, the company announced an ambitious expansion plan and said it was all set to spend a whopping QR1.7bn on opening more branches and renovating some of the existing ones.
Mawashi, on the other hand, is busy launching a number of key ventures, which among other things include building central livestock markets in places like Umm Salal, Al Wakra and Al Rayyan.
"We are in the process of expanding our facilities since the demand for our products and services has been growing hugely," said Al Kaabi.
Reports of a possible merger of Mawashi and Al Meera were not taken seriously by investors on the Qatari bourse yesterday and their stock prices remained almost unaffected.
In fact, Al Meera, whose stocks are quite popular with Qatari retail investors, lost 40 dirhams at the close of trading (from QR58 to QR57.60).
Mawashi stocks, though, showed a marginal gain of 10 dirhams (QR17.20 to QR17.30). Analysts said they did not reflect any impact of media reports of the possibility of a merger with Al Meera.
"There's a long way to go. Right now there is just speculation," said an analyst of a possible merger between the above two firms.
© The Peninsula 2010
