Two flagship aluminum firms owned by the United Arab Emirates are set to merge to create the globe's fifth largest aluminum production company with a projected enterprise value of US$15 billion.
The merged companies is expecting to improve efficiency to assist the production of aluminum in the Middle East sheikhdom to become more competitive against its peers in the region. The said merger has been in the works for the past three years.
The new entity from the merged companies would be called Emirates Global Aluminum. The company would be jointly held by Dubai Aluminum (Dubai) and Emirates Aluminum (Emal). The owners of Dubal is Investmtne Corporation of Dubai (ICD) and Emal is the joint venture project of ICD and the Abu Dhabi state sovereign fund Mubadala.
According to Mubadala CEO Khaldoon Khalifa al-Mubarak, "Emirate Global Aluminium will build on strong foundations of leadership, to become a major industrial champion and engine of economic development for our people."
The merged aluminium firm would be able to produce 2.4 million tonnes per year once the phase two operation of Emal has been completed by 2014.
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