DFM bids for Nasdaq

24 December 2009

The Dubai Financial Market (DFM) has submitted a $121 million bid to acquire Nasdaq Dubai.

DFM’s offer for the exchange consists of $102 million in cash and 40 million DFM shares and has been approved by owners Borse Dubai and Nasdaq OMX Group.

The merger has been proposed to develop closer operational links between the two exchanges and to provide stakeholders with the opportunity to benefit from the future growth of Nasdaq Dubai.

Jeff Singer, chief executive officer of Nasdaq Dubai, said: “The combined strengths of the two exchanges will help attract new issuers, from across the region and internationally, who will be able to choose which of the two exchanges is appropriate for them according to their commercial and regulatory preferences.”

He added that the merger will also lead to the creation of a stronger market hub within the Gulf Cooperation Council region.

The deal was backed by the DFM board and is now waiting for approval from the United Arab Emirates’ Securities and Commodities Authority and the Dubai Financial Services Authority.

DFM has announced it will restructure itself into a holding company to adhere to industry regulations.

By Jim Ottewill

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