Business | Property
Deyaar and Union deny direct merger talks
Dubai developers Deyaar and Union Properties on Tuesday denied that they were in merger talks but were unable to say if the government was looking into ordering a tie-up amid tightening liquidity.
- Reuters
- Published: 23:26 October 7, 2008
Dubai: Dubai developers Deyaar and Union Properties on Tuesday denied that they were in merger talks but were unable to say if the government was looking into ordering a tie-up amid tightening liquidity.
On Monday, a news agency reported that Deyaar was mulling a $4.3 billion (Dh15.91 billion) merger with Union Properties. The report came after weeks of speculation into looming consolidation in the real estate sector and days after Dubai mortgage lenders Tamweel and Amlak said they were in talks to merge.
"There is no foundation on this. We have not talked to Union Properties; I was shocked when I read it," Deyaar Chief Executive Markus Giebel told reporters.
But answering a question on whether a merger could be government-orchestrated Giebel said: "I am not privileged to government talks."
His comments were echoed by Union Properties Chief Financial Officer Zaid Ghoul, who told Reuters that his firm was "not aware of any official discussions concerning a possible merger with Deyaar" but was not privy to government plans.
"Looking at a merger there are many aspects to consider... The business models between the two companies are different," he said.
In 2007, two Dubai banks merged, creating the country's largest lender and analysts say the impact of the global credit crunch could speed up government-encouraged consolidation to create larger companies better able to weather financing difficulties.
"This is a way of raising funds basically. This is why you are seeing companies selling out because the bigger the entities are, the stronger it will be," said Chahir Hosni, sales manager at EFG-Hermes. "Apparently there are talks, whether its going to go through or not, these things usually take time."
Share this article
Related Articles
Gulf News classifieds
Popular in Business
Business Editor's choice
-
New law to protect investor rights
Dubai land department is studying legislation to protect property purchasers
-
Global Village
Revamped layout featuring four cultures to greet visitors this season
-
Cloud computing is here to stay
Managing security effectively is critical when sharing data over the internet
-
Banking
Mortgages: there's light at the end of the tunnel
UAE buyers are securing home loans again
