UAE-based National Marine Dredging Company (NMDC) has announced the legal completion of its merger with top Emirati engineering and construction group, National Petroleum Construction Company (NPCC), thus creating a major engineering and construction powerhouse.
The official announcement from NMDC comes following the shareholders' vote on December 14 and the receipt of all required regulatory approvals.
This merger will pave way for creation of one of the leading integrated oil and gas and marine services EPC players, with an established footprint across Mena and South Asia regions.
By creating a single platform, the Combined Group is ideally positioned to capture growth opportunities in the UAE and in key regional markets, with strong capabilities across the value chain to support future expansion plans.
As previously outlined, the mandatory convertible bonds that were issued to the shareholders of NPCC as consideration for the acquisition by NMDC of the entire share capital of NPCC have been converted into 575 million ordinary shares in NMDC.
With this move, NMDC becomes one of the largest companies on the Abu Dhabi Securities Exchange by market capitalisation, providing a positive impact on overall demand and liquidity, said a top official.
"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," remarked its CEO Engineer Yasser Zaghloul.
NPCC CEO Engineer Ahmed Al Dhaheri said: "We are excited to commence our collaboration with NMDC, and 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 regional EPC champion, and support our efforts to explore new growth avenues across the value chain," he added.