Abu Dhabi's IHC plans $33bn merger to create investment powerhouse

Merger of 2PointZero, Multiply Group and Ghitha Holding will create one of the UAE's largest listed investment companies

International Holding Company (IHC), the largest listed company in the UAE, is merging three of its portfolio companies to create a Dh120 billion ($33 billion) energy and consumer sector-focused investment platform.

The merger will bring together IHC’s three flagship companies 2PointZero, Multiply Group, and Ghitha Holding into a single, “next‑generation investment powerhouse” that will create one of Abu Dhabi’s largest listed investment companies, IHC said.

The merged entity will be renamed the 2PointZero Group and will continue to be listed on the Abu Dhabi Securities Exchange (ADX), uniting three platforms across sectors that are essential to future global growth.

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The transaction will strengthen IHC’s position as a leader in sustainable value creation.

The merged platform will focus on energy and consumer sectors, leveraging on rising energy demand, AI innovation, global consumer growth, and expanding food security needs to propel its business, IHC said.

“This merger reflects IHC’s continued commitment to building globally competitive platforms that drive sustainable value for Abu Dhabi and beyond,” Sheikh Tahnoon bin Zayed, chairman of IHC, said.

“By combining three of our most strategic entities, we advance a structure that enhances long‑term growth, scalability and resilience across vital global sectors.”

The transaction also reinforces IHC’s role as an “architect of transformation, harnessing AI and dynamic value networks to shape industries of tomorrow”, Sheikh Tahnoon, who is also Deputy Ruler of Abu Dhabi and National Security Adviser, said.

International Holding Company headquarters in Abu Dhabi. Photo: IHC

Transaction details

The combination of three companies will be executed through share‑swap whereby Multiply Group will issue about 23.36 billion new shares to acquire, 21.60 billion shares of 2PointZero – 100 of their stake – from IHC-related entities. It will acquire 1.77 billion shares of Ghitha Holding, which equals 83.9 per cent of IHC related entities in the company.

The share capital of Multiply will increase from current Dh2.8 billion to Dh8.64 billion. Once the deal is completed, the outstanding shares of the merged entity will stand at 34.56 billion and its combined asset base will surge to Dh120 billion, according to IHC.

Subject to shareholder and regulatory approvals, the deal is expected to be completed by mid‑November, the company added.

Push for scale

The IHC deal is the latest among a string of merger deals in the region. Banks and financial institutions, energy and utility companies, healthcare operators, as well as technology and artificial intelligence investment companies in recent years, have combined their balance sheets to gain scale amid intensifying competition.

IHC said the formation of 2PointZero underscores IHC’s long-term vision to create dynamic value networks through innovation, scale, and disciplined growth. The move reinforces the company's role as a "catalyst of enduring value creation for the UAE and the global economy", it added.

“This milestone transaction marks the next evolution of Multiply," group chairman Syed Basar Shueb said.

"Combining complementary businesses within a unified structure accelerates our expansion, drives operating efficiency, and strengthens diversified shareholder returns.

The move, Mr Shueb said, said will enable the company to scale high‑growth verticals and apply AI‑driven performance strategies that redefine value creation across sectors.

Multiply Group, one of Abu Dhabi’s largest investment platforms, currently operates across five consumer-focused sectors: mobility, media, apparel, packaging, and beauty. The company, which has achieved more than five times revenue expansion in the past four years, also manages a significant energy portfolio.

It's portfolio of investments include a major stake in Emirates Driving Company, energy and utilities major Taqa, renewable energy company Kalyon Enerji. The company has also expanded in Europe with Dh5.6 billion acquisition of a majority stake in Spain’s apparel giant Tendam and a stake in Italy’s ISEM, a packaging manufacturer serving clients such as LVMH, KIKO, Gucci, and L’Oréal.

The portfolio of 2PointZero, which was set up by IHC last year with Dh100 billion in assets, includes firms across energy, mining, and financial services sectors including El Sewedy Electric in Egypt and EHC International. In the financial sector, 2PointZero’s holdings include Lunate, Beltone Holding, Chimera Investment, Alpheya, Citadel, and Sagasse.

The portfolio of Ghitha Holding, which is central to the UAE's food security agenda, include Al Ain Farms, Al Ajban Poultry, Abu Dhabi Vegetable Oil Company, Al Hashemeya, Asmak, Marmum, Mirak Group, Zee Stores, and Royal Horizon. Through Apex Investments, the company also maintains its investment in the energy sector.

Ghitha Holding is at the forefront of the UAE's food security agenda. Photo: Ghitha Holding

Rationale for the deal

IHC said the merged entity brings together the "complementary strengths" of three investment platforms, which allows it to build a vertically integrated energy platform positioned to deliver sustainable growth and long-term value.

It will hold "leading positions across key consumer categories that anchor everyday life and economic activity, with operations spanning more than 85 countries," IHC said.

With synchronised expansion in energy demand and consumer spending globally, worldwide energy usage is forecast to climb by more than 20 per cent by 2050. More than one billion new middle-class consumers are projected by 2030, adding an additional $2.4 trillion in annual consumption.

The capital strength of the new entity will allow it to capture these opportunities, IHC said.

"An investment approach built for resilience, geographic reach, and scale, paired with continuing strategic acquisitions, will unlock new cost, digital, and operational synergies for long-term value creation," it added.

Multiply Group listed its shares on the ADX in 2021. Photo: Multiply Group

Investment Spree

IHC, the private sector bellwether and a major part of Abu Dhabi's efforts to diversity its non-oil business sectors, has been on an investment and acquisition spree as it aims to double its asset base to $218 billion by 2030.

The company in May announced the launch of RIQ, a $1 billion global reinsurance platform, which it developed in partnership with BlackRock, the world's largest asset manager.

This year, it also announced the acquisition of Maseera, a microfinance platform in Egypt, with a commitment to invest $1 billion over the next years to support its expansion.

IHC has also shown interest in expanding its portfolio assets in India and fast-growing economies in Central Asia, as well as the US.

Earlier this month, the Abu Dhabi conglomerate agreed to acquire a 43.5 per cent stake in India’s Sammaan Capital in a $1 billion deal.

The company is also an investor in Indian snack-maker Haldiram's, along with Alpha Wave Capital, PwC.

It also has $60 billion worth of investments in the US, including in companies like SpaceX and Ardent Healthcare.

IHC intends to increase its investment in the US by an additional $40-$50 billion in the next decade, Mr Shueb told The National in May.

Some of the UAE companies under IHC umbrella include Abu Dhabi's largest listed developer Aldar Properties, Modon Properties, Adnec Group, Presight, Al Seer Marine and NMDC Group.