DUBAI- Saudi Arabia's Dur Hospitality Co and Taiba Investments Co are in merger talks that could create a company with combined assets worth $2.4 billion across the kingdom's hotel, tourism and real estate sectors.
Dur and Taiba announced the merger talks in similar bourse statements on Sunday, adding that an agreement may not be reached between to the two companies in which Aseelah Investment Co is a significant shareholder.
Neither provided further details. Dur did not respond immediately to a request for comment and a Taiba representative could not be reached for immediate comments.
Taiba, which has interests in hotels, tourism facilities and real estate, has a market capitalisation of $1.5 billion, Refinitiv data shows.
Dur's market capitalisation is $923 million, with investments in hotels, travel agencies and entertainment centres, Refinitiv data shows.
Saudi Arabia's sovereign wealth fund, the Public Investment Fund, owns nearly 17% of Dur, according to Refinitiv.
(Writing by Alexander Cornwell Editing by David Goodman) ((Alexander.Cornwell@thomsonreuters.com;))