UPDATE 1-Dubai, Emaar say in talks to merge developers
(Adds further details, background)
DUBAI, June 26 (Reuters) - Dubai Holding, owned by the ruler of the Gulf emirate, and leading developer Emaar Properties EMAR.DU said on Friday they were in advanced talks to merge four local real-estate companies.
A joint statement said the move would consolidate Emaar with three developers owned by Dubai's ruler -- Dubai Properties, Sama Dubai, and Tatweer, which are all prominent players in a sector badly hit by the global financial crisis.
"Emaar and Dubai Holding ... with the assistance of their financial advisers, the Royal Bank of Scotland PLC and Merrill Lynch International respectively, are in the process of finalizing a thorough assessment of the merits of this proposed consolidation," the statement said.
The assessment covered areas including "the valuation of the various entities as well as ... the potential transaction structures," it said.
"Consolidating these three companies with Emaar is a natural progression in the evolution of the Dubai real estate landscape, providing benefits to all stakeholders," Mohammed al-Gergawi, chairman of Dubai Holding, said in the statement.
Dubai, the Gulf's trade and tourism hub, faces a sharp slowdown in its property market, with real estate prices tumbling 41 percent in the first three months of 2009, according to industry consultant Colliers.
The slowdown has led to project cancellations worth hundreds of billions of dollars. (Reporting by Firouz Sedarat; Editing by Greg Mahlich)
