Dubai: Arabtec Holding confirmed on Tuesday that it is in talks to appoint Swiss investment bank UBS as a financial adviser on its merger talks.
The confirmation comes after a Reuters report on Thursday said Arabtec has appointed UBS and Dubai-based Shuaa Capital as advisers on its potential merger with Trojan Holding.
Arabtec named UBS in its statement, saying that it is in negotiations to hire the bank to assist it in the preliminary review and evaluation of a potential merger with Abu Dhabi’s Trojan Holding. It did not mention any other advisers.
The contractor’s share prices gained 2.05 per cent.
Arabtec in early September said it has started a review with Trojan on “the possibility of combining their construction businesses.” The news comes as the construction sector continues to face challenges due to a slowdown in demand for real estate, and as experts see a need for consolidation.