AS&H Clifford Chance Acted for Saudi Tadawul Group to Strategic Dubai Mercantile Exchange Deal, Forming Gulf Mercantile Exchange
AS&H Clifford Chance Acted for Saudi Tadawul Group to Strategic Dubai Mercantile Exchange Deal, Forming Gulf Mercantile Exchange
Leading legal powerhouse AS&H Clifford Chance has successfully guided Saudi Tadawul Group (STG) in a strategic acquisition of a 32.6 per cent stake in Dubai Mercantile Exchange (DME). This landmark deal, involving both new and existing shares, will fuel DME's growth and solidify STG's position as a dominant force in the Middle East's thriving commodities market.
The acquisition elevates STG to the joint-largest shareholder in DME Holdings Limited alongside CME Group, with other key investors including Oman Investment Authority and Dubai Holding. The deal includes a rebranding to 'Gulf Mercantile Exchange' and an option for STG to increase its stake in the future, all subject to regulatory approvals.
Ensuring a seamless transition, the DME will maintain its base in the UAE's Dubai International Financial Centre (DIFC) after STG's investment. Under the watchful eye of the Dubai Financial Services Authority, the DME will continue its vital role, with trades executed on its platform cleared by CME Clearing and regulated by the US Commodity Futures Trading Commission.
The DME hosts the DME Oman Crude Oil Futures Contract, a global top-3 oil benchmark used by five Gulf Cooperation Council national oil companies.
Leading the cross-border team was Mohammed Al-Shukairy, M&A Partner at Clifford Chance Middle East, supported by AS&H Clifford Chance Corporate Partner Daniel Royle.
Capital markets specialist Mansoor AlHagbani, Head of Capital Markets at AS&H Clifford Chance, offered expert guidance on specific aspects of the transaction.
The core transaction team, led by senior associates James Dadford (Dubai), Kimberly Ng (Dubai), and Rida Jamal (Riyadh), functioned seamlessly with associates Ismaila Ngum (Dubai) and Leen Kayali (Riyadh) and trainee solicitor Zeena Sa'di (Dubai) ensured a smooth and successful deal.
