CMS advises Oman Investment Authority

CMS has advised the Oman Investment Authority (OIA) in relation to Saudi Tadawul Group’s (STG) acquisition of a 32.6 per cent stake in DME Holdings Limited, the parent company of Dubai Mercantile Exchange (DME), one of the leading international commodities exchanges. The deal will see STG, a leading diversified capital markets group in the MENA region, become the joint largest shareholder alongside CME Group with other shareholders including the OIA and Dubai Holding as well as global financial and commercial industry leaders.

The shares acquired represent a mix of new and existing shares, with the proceeds from the new shares used to fund DME’s growth. Following the transaction, DME will be rebranded as the Gulf Mercantile Exchange to reflect its position as the key regional commodities exchange in the Middle East with global relevance.

The investment by STG brings together world-class strategic partners and expertise to accelerate DME’s growth potential, including CME Group, the OIA, and Dubai Holding alongside global financial and commercial shareholders. It will enable the new Gulf Mercantile Exchange to capture demand for energy, metals, and agricultural commodity markets and support the ongoing global transition to a sustainable economy through the launch of next-generation derivatives contracts as part of the transition to a sustainable economy. The transaction is subject to closing conditions, including as to regulatory approvals.

The CMS team was led by partner Graham Conlon and senior associate Blair Jones.