Dubai-based construction firm Arabtec Holding is mulling a merger with Trojan Holding, a construction company in Abu Dhabi, it announced in a bourse statement on Tuesday.
The two companies have “commenced a review of the possibility of combining their construction businesses”, Arabtec said.
“In the event an agreement is reached between the two parties 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,” the statement said.
The names of the advisors will also be announced upon their appointment, it added.
Earlier this month, Arabtec had said that it was considering the possibility of entering into a “cooperation agreement” with Trojan to collaborate in the construction sector.
The Dubai-listed contractor recently reported a 47.2 per cent drop in net profit for the second quarter to Dhs26.1m.
Revenue declined to Dhs2.19bn in the quarter, compared with Dhs2.39bn in the same period a year earlier, the company said.
In July, Arabtec Holding appointed Adel Al Wahedi as the acting group chief financial officer to replace Peter Pollard, who has been made the group CEO.
Pollard replaced Hamish Tyrwhitt, who stepped down from his role as group CEO in May.