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World’s fifth largest aluminium producer
Sheikh Mohammed Al Maktoum, ruler of Dubai said 'the company is Emirati, and the goal is global'.
June 4, 2013 9:06 by Reuters
In 2011, Dubal Chairman Sheikh Hamdan Bin Rashid Al-Maktoum, a member of Dubai’s ruling family, was quoted by a local newspaper as saying Mubadala had offered to buy a stake in Dubal, without providing more details.
Dubal’s 2012 profits nearly halved to 1.58 billion dirhams in 2012 from 3.52 billion dirhams in 2011 because of the high price of raw materials. Emal does not disclose its profits.
Emirates Global Aluminium, which the companies said would have an enterprise value of $15 billion, will be held jointly by the Investment Corporation of Dubai (ICD) and Abu Dhabi state sovereign fund Mubadala. ICD owned 100 percent of Dubal while Emal is a 50-50 joint venture between Mubadala and Dubal.
“There are going to be lot of surprises in the next two years and this is the first one,” said a senior Abu Dhabigovernment official, hinting at further consolidation of state companies.
The two emirates have also been in talks to merge their two main stock exchanges and had hired Goldman Sachs Inc to advise on the proposed transaction in 2010.
The new entity will have aluminium production capacity of 2.4 million tonnes per year after the completion of a second phase of Emal’s operations in mid-2014, ICD and Mubadala said in a statement announcing the tie-up.
Once the $4 billion phase two is complete, its capacity is expected to rise to 1.3 million tonnes a year from 800,000 tonnes now.
Dubal operates the largest single-site smelting facility in the world, built on a 480-hectare site in the Jebel Ali free-trade zone, with capacity to produce more than 1 million metric tonnes of high-quality finished aluminium products per year.
Abdulla Kalban, president and chief executive of Dubal, will be the managing director and chief executive of the new firm. The new entity will create an additional 2,000 direct jobs by 2020, the statement said.
ICD owns stakes in some of Dubai’s largest firms, such as Emirates Airline and lender Emirates NBD, while Mubadala has a mandate to develop Abu Dhabi’s local economy and has assets of $55 billion. It also owns stakes in private equity firm Carlyle and General Electric.
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