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Contracting company Arabtec Holding is in talks with Abu Dhabi-based contractor Trojan Holding about a potential merger.
In a statement to the Dubai Financial Market, where its shares trade, Arabtec said that the two firms “have commenced a review of the possibility of combining their construction businesses”.
“In the event an agreement is reached between … 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.
Trojan Holding, through its construction companies, including Trojan General Contracting and National Projects & Construction, has been involved with several construction projects. These include the W Hotel in Dubai, Yas Acres, Cranleigh School, and Viceroy Hotel, among others. If the merger goes through, both companies would be able to gain a greater market share in a challenging real estate market.
The statement comes after Arabtec and Trojan Holding said last week they were “willing to explore the possibility of entering into a cooperation agreement with a view to collaborate in the construction sector”.
Advisers working on a potential merger are yet to be appointed.
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