Riyadh – Mubasher: Saudi Tadawul Group Holding Company has entered into a binding agreement with the shareholders of DME Holdings Limited to acquire a 32.60% stake in Dubai Mercantile Exchange (DME).
Subject to pre-closing terms and conditions, the Saudi group will invest SAR 107 million ($28.50 million) to purchase a mix of new and existing shares, according to a bourse filing.
Following the transaction, the Tadawul-listed entity will become the joint largest shareholder in DME Holdings Limited alongside CME Group, Oman Investment Authority, and Dubai Holding as well as global financial and commercial industry leaders.
In line with its strategic plans, the Saudi Tadawul Group’s investment will contribute to its diversification and also boost DME’s growth as a regional commodities leader and
The partnership will unlock further opportunities in the energy, metals, and agricultural commodity markets and anchor the ongoing transition to a sustainable economy through the launch of next-generation derivative contracts.
Khalid Al Hussan, Group CEO of Saudi Tadawul Group, commented: “Our investment in DME Holdings Limited provides Saudi Tadawul Group with access to one of the most important asset classes globally for the first time, embedding commodities trading into the Middle East’s largest capital markets group.”
“ With the option to increase our stake in the future, this investment will contribute to our ability to diversify the Group’s revenues and opportunities and is firmly aligned with our growth strategy and ambitions as part of Vision 2030,” Al Hussan continued.
Derek Sammann, Senior Managing Director, Global Head of Commodities, Options, and International Markets, CME Group, noted: “Building on DME's successful benchmark Omani Crude Oil futures contract, Saudi Tadawul Group's participation in the exchange will unlock new opportunities for developing regionally relevant trading products to help global market participants gain exposure or manage energy, metals or agriculture price risk."
In the first nine months (9M) of 2023, Saudi Tadawul Group achieved SAR 298.30 million in net profit after Zakat and tax, an annual drop of 18.81% from SAR 367.40 million.
