Nasdaq Dubai, which was set up in 2005 and boasts just three primary equity listings, is being acquired by its larger local rival, Dubai Financial Market (DFM).
The move consolidates the government ownership of Dubai's exchanges. US operator Nasdaq OMX will swap its 33.3pc stake in the international exchange for a 1pc stake - worth $39m (£24m0 based on Monday's closing price - in DFM. That would leave Nasdaq OMX facing a 70pc write-down on the current book value of its 2008 investment.
For now, the deal won't change the way the exchanges do business. They will continue to operate as separate entities which share back office functions. Over time, though, a full operational merger is probable, once some kinks - in trading currencies, regulatory standards and procedures - are ironed out.
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