Norton Rose Fulbright advises CME Group

Norton Rose Fulbright has advised CME Group Inc. (CME), the world’s leading derivatives marketplace listed on Nasdaq, in relation to a binding agreement entered into with Saudi-exchange listed Saudi Tadawul Group Holding Company (STG), for STG to acquire a 32.6 percent stake in Dubai Mercantile Exchange (DME), one of the leading international commodities exchanges.

As a result of the agreement, STG will become the joint largest shareholder in DME parent company, DME Holdings Limited, alongside CME Group, with other shareholders including the Oman Investment Authority and Dubai Holding, as well as global financial and commercial industry leaders.

The shares to be acquired represent a mix of new and existing shares, with the proceeds from the new shares used to fund DME’s growth. The agreement, which enables STG to increase its shareholding in the future, will support a strategic move towards leveraging the Middle East’s geographic proximity to both key commodity production hubs and end-markets, with DME serving as a bridge between production and end-markets.

The partnership 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 Norton Rose Fulbright Dubai team advising on this deal was led by Dubai-based partner Hamed Afzal, with support from associates Michael Stevens, Amira Nassar and Ghislaino Kamdo and Trainee, Ali Zein. A team led by Dubai-based partner Matthew Shanahan is advising CME Group on the financial services regulatory aspects of the transaction, whilst London-based partner Michael Alliston and associate Daniel Alexander advised on tax aspects.

Hamed Afzal said, “We are privileged to support our client, CME Group, on this landmark transaction, which is highly significant for the capital and commodities markets landscape in the region. The transaction is testament to the expertise and resources we are able to bring to bear to support our public company clients on their strategic transactions.”

The transaction is subject to closing conditions, including regulatory approvals.