Dubai: Caracal International, a light weapons manufacturer based in Abu Dhabi, said it has bought 150-year-old German gunmaker Merkel.
The deal is seen as a shot in the arm for the UAE company as it seeks to compete in international markets.
Caracal International will acquire the company's production lines in Germany and the US, and its distribution networks in Europe and America.
These networks are distributing several products of other international companies, particularly in the American market.
"We are very pleased at having closed such a successful deal, which will soon give our company significant presence in global markets," said Hamad Khalifa Al Neyadi, managing director of Caracal International.
He said the deal is part of Caracal's strategic plan and reinforces its capability to compete in foreign markets.
The acquisition of Merkel means that "we now have a strong distribution network for our products of light weapons".
Caracal began operations last year as the first national company making light weapons.
Al Neyadi said he expects the company will make its mark in the world markets, particularly in the US, which is considered the biggest in the world for light weapons.
"A key factor in winning this deal was that a highly qualified Emirati team led and successfully concluded the negotiations. On the other hand, Merkel found that Caracal's products are of high quality and very competitive, augmenting Merkel's success in selling Caracal products through their existing distribution channels," Al Neyadi said.