A deal to combine Abu Dhabi's National Petroleum Construction Company with the National Marine Dredging Company is complete after the companies obtained all of the necessary regulatory approvals.
The deal, which gained shareholder approval on December 14, creates a much larger engineering and construction company specialising in oil and gas and marine dredging work. The combined group had revenues of almost Dh8.9bn in 2019.
“Today is the beginning of the next phase of the journey for our companies. Together we will focus on creating a new success story, from Abu Dhabi for the world, which we hope will benefit our stakeholders, shareholders, the UAE and our employees,” NMDC's chief executive Yasser Zaghloul said in a statement.
"We are looking forward to working together on projects that will further strengthen our ‘Made in UAE’ value proposition. This promising venture will further solidify our position as [a] regional EPC champion, and support our efforts to explore new growth avenues," NPCC chief executive Ahmed Al Dhaheri said.
Prior to the merger, state holding company ADQ held a 32 per cent stake in Abu Dhabi Securities Exchange-listed NMDC and was the majority owner (through its Senaat subsidiary) of NPCC. It is effectively a reverse takeover, with NMDC issuing mandatory convertible bonds for NPCC's entire share capital, which are being converted into 575 million ordinary shares, or 69.7 per cent of the combined entity. The business will maintain its market listing.
ADQ holds government stakes in a broad portfolio of companies, including Abu Dhabi Airports, Abu Dhabi Ports, Emirates Steel, Emirates Nuclear Energy Corporation, Etihad Rail, Abu Dhabi Securities Exchange, healthcare operator Seha, media hub TwoFour 54 and others.
Within the past year, a number of its subsidiaries have been merged to create stronger entities.
In July, Abu Dhabi Power Company and Abu Dhabi National Energy Company completed a merger creating a utilities business with Dh200 billion ($54.4bn) of assets. Abu Dhabi Ports also acquired industrial zones operator Zones Corp in the same month and in November, dates company Al Foah was acquired by food and beverage group Agthia, which is also part of ADQ's Senaat subsidiary.