|10 September, 2019

UAE's Arabtec, Trojan review possibility of combining construction businesses

Arabtec had announced earlier in September that it has appointed Wail Farsakh as its new Group Chief Operating Officer

Image used for illustrative purpose. Arabtec logos are seen on buildings under construction in the Marina area of Dubai in this picture taken November 28, 2009.

Image used for illustrative purpose. Arabtec logos are seen on buildings under construction in the Marina area of Dubai in this picture taken November 28, 2009.

REUTERS/Steve Crisp

Dubai-listed contractor Arabtec Holding said that it has commenced with Abu Dhabi-based construction group Trojan Holding a review of the possibility of combining their construction businesses, which could lead to a merger between the two companies.

“In the event an agreement is reached between the two companies following the technical, financial and legal reviews, it is intended that a contract will be signed for this purpose detailing the terms and applicable procedure for such combination which may lead to a merger between the two companies,” Arabtec said in a statement.

Arabtec had announced earlier in September that it has appointed Wail Farsakh as its new Group Chief Operating Officer.

For the second quarter of 2019, the construction giant posted a 47.26 percent drop in profit. (Read more here)

The company's stock was trading 12.58 percent higher by 12:23 GST on Tuesday at 1.79 dirhams.

(Writing by Gerard Aoun, editing by Seban Scaria)

(Gerard.aoun@refinitiv.com)

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