Completion of transaction combining Arkan and Emirates Steel creates the UAE’s largest steel and building materials company
Following the shareholder vote on 9 August 2021 and the receipt of all regulatory approvals, Arkan Building Materials Company PJSC (“Arkan”), a leading construction and building materials company in the UAE, confirms the legal completion of its combination with Emirates Steel Industries PJSC (“Emirates Steel”), a leading integrated steel manufacturer in the Middle East.
The combination of Arkan and Emirates Steel (the “Combined Group”) creates the UAE’s largest steel and building materials company with a compelling strategic proposition and strong potential for growth in the UAE and internationally. The transaction provides significant revenue diversification for the Combined Group and marks the first time that investors have access to a steel producer on a UAE public market.
The Group is well placed to scale and grow, create new business opportunities and ensure that homegrown manufacturers are at the forefront of driving a sustainable, diversified national economy.
Under key terms of the offer, Arkan issued to Senaat a convertible instrument, which converted into 5.1 billion ordinary Arkan shares.