Dubai, Abu Dhabi Said to Complete Bourse Merger Due Diligence

Abu Dhabi and Dubai completed due diligence on a potential merger of the two bourses in the United Arab Emirates, bringing the combination a step closer, according to two people familiar with the matter.

Valuation and structuring work was completed in December, with the deal now requiring approval from the governments of the two emirates before proceeding further, the people said, asking not to be identified as the information isn’t public.

JPMorgan Chase & Co. and First Gulf Bank PJSC (FGB) are advising the government of Abu Dhabi, owner of the Abu Dhabi Securities Exchange, according to the people. Citigroup Inc. is advising Investment Corporation of Dubai, the investment company which owns the Dubai Financial Market (DFM), the people said. KPMG examined DFM’s books, while Ernst & Young completed a similar exercise on the Abu Dhabi Securities Exchange, one of the people said.

Both companies are still considering how to progress after missing a previous deadline to complete the deal before the end of 2013, one of the people said. There’s not a clear timetable as to when the merger will take place, the two said.

Spokesmen for Citigroup, Ernst & Young, Dubai Financial, JPMorgan and KPMG declined to comment, while nobody at First Gulf Bank was immediately available. A spokesman for ADX did not respond to calls and an email requesting comment; Dubai Media Office didn’t immediately respond to e-mailed questions

To contact the reporter on this story: Dale Crofts in Dubai at

To contact the editor responsible for this story: Dale Crofts at

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