Leading property financiers of UAE reported to get in merger talks
Merger talks have commenced between the two leading real estate financiers in the UAE - Amlak Finance and Tamweel in order to ease the liquidity crunch affecting the region.
Yesterday both the companies, which have been listed on Dubai Financial Market, commenced with exploratory discussions related to the merger with the aim to increase their financial strength, size and scale to pursue the growth plans in the domestic and regional markets.
A joint statement issued by the companies said, “It will enhance value proposition for customers through a larger and more efficient company with broader product capabilities, meaningful expected operational and financial synergies resulting from the increased size, scale, funding and product capabilities.”
Nasser Bin Hassan Al-Shaikh, Director-General of Dubai Department of Finance and Chairman of Amlak Finance, added, “The resultant entity would have a combined balance sheet in excess of 27 billion dirhams (USD 7.35 billion) and serve as a financial powerhouse with the increased critical mass required to lead the region's real estate finance markets to the next stage in their ongoing organic growth.”
The banks and other financial institutions in the Gulf region had been facing a lot of damage since the major financial crises occurred in the US in recent weeks. Following this, many strategies have been implemented by the banks to minimize the damage.
Few other banks within UAE have also been reported to indulge in merger talks, however nothing is confirmed as yet.
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