Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Abu Dhabi Developmental Holding Company (ADQ) funded Senaat proposed merger of Al Arkan steel and Emirates steel to form UAE’s biggest steel and building materials company. 


Senaat owns a 51pc stake in Arkan and holds the entire unlisted Emirates steel. For the deal, Arkan will issue a convertible instrument to Senaat which is convertible to around 5.1bn ordinary shares of the company at AED0.798 per share. This would value Arkan at AED1.4bn.

The combined entity is valued at AED13bn and the Senaat will own 87.5pc of the entire issued share capital of the new company.


If the two companies agree to a deal, a general assembly would be held to acquire approval from shareholders in the second half of 2021.


Emirates steel produces mild steel low carbon billets. The company has an annual capacity to produce 135,000mt MS billets from scrap using induction furnaces.


($1 = AED3.67)

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